LindaB1993
Expert Alumni

Retirement tax questions

It seems that the corresponding qualifying educational expenses for 2019 may not be reflected in TurboTax completely.  These should offset the distribution.  Also, the Form 1099-Q should be linked to the "student" receiving the the benefit.

 

The account owner (such as a parent) will receive a copy of the 1099-Q instead if the distributions from a 529 plan aren’t made directly to the beneficiary or to an educational institution for the benefit of the beneficiary. (This will eliminate this reporting requirement)

 

When the beneficiary enrolls in school and starts taking distributions to pay school expenses, he will begin receiving a Form 1099-Q each year. And as long as the distributions are used to pay only qualified education expenses, the beneficiary doesn’t pay income tax on the distributions.

  

 

 

 

 

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