topic Covid refund to 529 Plan in Education

Covid refund to 529 Plan

jjf_tt — Mon, 08 Mar 2021 01:55:54 GMT

We received a Room and Board refund from my sons college and we did not redeposit it into the 529 account. We used the funds for Fall 2020 expenses. Do I need to include the amount of the refund somewhere in the Educational expenses section of Turbo Tax? Turbo tax asks if we redeposited the funds, when we click the no box Turbo Tax continues but does not have a place to enter the refund amount. Should it just be added to the 529 plan 1099Q gross distribution?

Re: Covid refund to 529 Plan

MaryK4 — Mon, 08 Mar 2021 02:28:30 GMT

If you used the refund to pay for other qualified educational expenses, you do not have to report the refund for the Room & Board. Do not add to the 1099-Q distribution.

Re: Covid refund to 529 Plan

Hal_Al — Mon, 08 Mar 2021 02:32:53 GMT

You used the funds in the same calendar year and that makes it a "qualified distribution".