topic Re: Excess Distribution from 529 in Get your taxes done using TurboTax

Excess Distribution from 529

JC_RABC — Tue, 10 Feb 2026 10:19:35 GMT

Hi,

In August of 2023, I accidentally withdrew too much for my daughters' fall semester in 2023 in the amount $4750. The plan told us we could not redeposit the amount back into the account.

We received the bill for 2024 Spring semester late December but was out of town and did not pay it. It's 1/3/2024, can I pay it now and not be subject to any penalty? I read that there is a look back period up to 1/4/2024. Is this correct? I live in the state of Maryland, is there any penalty for MD for this event?

Thanks in Advance

Re: Excess Distribution from 529

Anonymous_ — Wed, 03 Jan 2024 17:50:01 GMT

I will page Champ @Hal_Al

Re: Excess Distribution from 529

JC_RABC — Wed, 03 Jan 2024 17:53:48 GMT

Thank you,

I posted another version of my question here with new facts.

https://ttlc.intuit.com/community/taxes/discussion/529-expense-and-withdrawal-timing-question/00/3122589

Re: Excess Distribution from 529

AmyC — Mon, 08 Jan 2024 22:24:04 GMT

If your educational expenses - tuition, room and board, books, etc exceed your 529 disbursement, then you would not have a taxable distribution. You state that you paid $12,000 and $13,000 for educational expenses with only $18,000 coming from the 529. As long as you had $18,000 or more in qualified expenses, there will not be a need to report the 1099-Q. In fact, depending on your income, you may qualify to claim $4,000 for the AOTC credit. I encourage you to read another post of mine with more details here.

@JC_RABC

Re: Excess Distribution from 529

JC_RABC — Wed, 17 Jan 2024 03:26:09 GMT

Thank you!