My son took out a non qualified withdrawal from his 529. I thought only the earnings get taxed as income. Why is it asking me for the total withdrawal to enter?
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My son took out a non qualified withdrawal from his 529. I thought only the earnings get taxed as income. Why is it asking me for the total withdrawal to enter?
My son took out a non qualified withdrawal from his 529. I thought only the earnings get taxed as income. Why is it asking me for the total withdrawal to enter?
The program may ask for that information in case there was more than one distribution, or if only part of the distribution is taxable. You are correct, the Income tax and penalty tax will only be on the earnings portion.
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