krause99
New Member

Qualified tuition program comp or taxable distribution - I am being taxed on a portion of my distributions from my 529 plan. How is this number on line 2b calculated?

We took $19,354 in distributions from my son’s 529.  ALL money was used for qualified college expenses.  Under the “qualified tuition problem computation of taxable distribution” section of the 1099-Q on line 2b, there is an amount $16,850.  Where does this number come from?  I don’t understand why I would be taxed on any of the distribution if it was ALL used for qualified expenses.

KrisD
Intuit Alumni

Retirement tax questions

If you clicked "Maximize My Credit" the program  will tax the distribution and take an education credit if the credit is more than the tax. 

Please revisit the "Education Information" section located on the "Here's Your Education Summary" page. 

Go through and answer the questions. On the last screen it should show the amount of education expenses being used for a credit. You can change this to zero if you do not want  the distribution taxed. 

You may also type   letme   into the search box and change the credit. 

If you do not choose a credit, (leave all boxes blank), no credit will be claimed. 

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