Skip to main content
Level 2
April 13, 2025
Question

My qualified distributions from my Educational Savings Program (529) are causing my state taxes to increase. From my understanding, qualifed 529 expenses are tax exempt?

  • April 13, 2025
  • 1 reply
  • 17 views
No text available

    1 reply

    AmyC
    Level 15
    April 14, 2025

    If they are qualified expenses and not taxable, they should not be reported. IRS Publication 970, Tax Benefits for Education states:

    Page 45: Don't report tax-free distributions (including qualifying rollovers) on your tax return.

     

    Please remove the form and keep it with your tax files. 

    **Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"