topic I withdrew funds from a 529 account. The proceeds were sent to me and I in turn sent the money to the college. I will not receive a 1099 Q. What do i do on my taxes? in Retirement tax questions

I withdrew funds from a 529 account. The proceeds were sent to me and I in turn sent the money to the college. I will not receive a 1099 Q. What do i do on my taxes?

phelan-sean — Thu, 30 Jan 2020 21:58:49 GMT

I have a paper trail of where the money was sent. I do not want to pay a penalty or have the money sent to the college counted as income.

Re: I withdrew funds from a 529 account. The proceeds were sent to me and I in turn sent the mone...

GiseleD — Thu, 30 Jan 2020 22:24:33 GMT

The deadline for 1099-Q forms is January 31, 2020. May I recommend waiting a few more days or contacting the 529 plan administrator?

Re: I withdrew funds from a 529 account. The proceeds were sent to me and I in turn sent the mone...

phelan-sean — Fri, 31 Jan 2020 11:26:40 GMT

The funds were not earmarked as paying towards tuition. I will not be getting a 1099 Q. I have received a 1099 B and 1099-Div.

This is why I am so confused as to what to do. I did not keep the money as income. It was sent to the college.

Re: I withdrew funds from a 529 account. The proceeds were sent to me and I in turn sent the mone...

AmyC — Fri, 31 Jan 2020 22:30:56 GMT

Money that comes from a 529, must be reported on the 1099Q. Contact the plan administrator. Here is what the IRS says in Topic NO. 313:

Distributions

You should receive a Form 1099-Q (PDF) from each of the programs from which you received a QTP distribution. The amount of your gross distribution (box 1) shown on each form will be divided between your earnings (box 2) and your basis or return of investment (box 3). Form 1099-Q should be made available to you by January 31, 2020.

Additional Information

For additional information, refer to Chapter 8 of Publication 970, Tax Benefits for Education.

Re: I withdrew funds from a 529 account. The proceeds were sent to me and I in turn sent the mone...

NCperson — Fri, 31 Jan 2020 23:20:14 GMT

are you the parent or the student?

if you are the PARENT and you are declaring the student as a dependent, then

- you will receive a 1098-T and the critical items are what is in Box 1 and Box 5

- you will also receive a 1099-Q - because you received the money from the 529. (your SS# will be on the form)

as long as the money you received in BOX 1 of the 1099-Q is less than (BOX 1 minus BOX 5 from the 1098-T PLUS the room and board and any other eligible expenses), you will NOT be taxed on any of the earning on BOX 2 of the 1099-Q. That is a mouthful, but please read it slowly and carefully...and answer the questions slowly and carefully in TT

The 1099-Q goes on the tax return (if required) of the person whose SS# is listed - no exceptions

The 1098-T goes on the parents tax return if they are claiming the student as a dependent.

The 1098-T goes on the students tax return if they are NOT claimed as a dependent on another's tax return (normally their parents)