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carubri24
New Member

Are the gains in your 529A taxable when you withdraw them to pay tuition?

I entered my 1099Q Last, and it cut my refund in half.
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1 Reply
SusanY1
Expert Alumni

Are the gains in your 529A taxable when you withdraw them to pay tuition?

TurboTax will show this as taxable until you associate them with expenses in the education expense section of the program, which is a little later in the interview.  

 

To enter your education expenses, visit Deductions & Credits then click on  Expenses and Scholarships and follow the prompts.  Once your qualifying education expenses are entered, you should notice that the distribution is no longer treated as taxable. 

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