In CA, can you use an entire 529 withdrawal for private high school tuition? Or just the contribution and the earnings are taxable?Federally, neither are taxable correct?

[AmyC]

No the 529 isn't eligible in CA with possible penalties. The federal allows the 529 for high school. 

Using 529 Savings Plans for Private School Tuition - Saving for College states:

Although California residents can access the same federal tax benefits of using a 529 for high school, their state tax will be adversely affected. California considers 529 withdrawals for secondary school tuition a non-qualified distribution and even imposes a penalty.

[wkassin]

Can you please provide details on how penalties are calculated, to both contributions and earnings in the state of CA if a 529 is used for private high school tuition.

[wkassin]

Can you please provide details on how penalties are calculated, to both contributions and earnings in the state of CA if a 529 is used for private high school tuition.

[AmyC]

From Frequently Asked Questions - ScholarShare 529:

How are withdrawals for nonqualified expenses taxed?

The earnings portion of a non-qualified withdrawal is subject to federal income taxation, and an additional 10% federal tax. For California taxpayers, the earnings portion of a non-qualified withdrawal may also be subject to California income tax and an additional 2.5% tax. See the Plan Description for details.