https://ttlc.intuit.com/community/taxes/discussion/re-529-plans/01/3579094#M1322547 <P>529 distributions used to pay education expenses for someone other than the designated beneficiary are non-qualified distributions.</P> <P>&nbsp;</P> <P>The earnings part of the distribution is taxable and subject to a 10% penalty.</P> <P>&nbsp;</P> <P>You enter your form 1099-Q and enter no education expenses. TurboTax will subject the earnings to taxation and the 10% penalty.</P> <P>&nbsp;</P> <P>&nbsp;</P> Tue, 18 Mar 2025 18:02:25 GMT MinhT1 2025-03-18T18:02:25Z https://ttlc.intuit.com/community/taxes/discussion/529-plans/01/3579039#M1322524 <P>I am under the impression that 529 distributions satisfy IRS rules if they go to members of the immediate family.&nbsp; Non-immediate family members do not qualify as beneficiaries.&nbsp; How do I report this in Turbotax Deluxe if the money was withdrawn from a 529 plan and used to pay tuition for a college student's tuition if the student is not a member of the immediate family?&nbsp; She is a granddaughter of my brother-in-law.</P> Tue, 18 Mar 2025 17:39:26 GMT https://ttlc.intuit.com/community/taxes/discussion/529-plans/01/3579039#M1322524 smilack2000 2025-03-18T17:39:26Z https://ttlc.intuit.com/community/taxes/discussion/re-529-plans/01/3579094#M1322547 <P>529 distributions used to pay education expenses for someone other than the designated beneficiary are non-qualified distributions.</P> <P>&nbsp;</P> <P>The earnings part of the distribution is taxable and subject to a 10% penalty.</P> <P>&nbsp;</P> <P>You enter your form 1099-Q and enter no education expenses. TurboTax will subject the earnings to taxation and the 10% penalty.</P> <P>&nbsp;</P> <P>&nbsp;</P> Tue, 18 Mar 2025 18:02:25 GMT https://ttlc.intuit.com/community/taxes/discussion/re-529-plans/01/3579094#M1322547 MinhT1 2025-03-18T18:02:25Z