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.