How to find cost/basis for an ESA?

[rcythr]

Unfortunately my wife had to take a taxable distribution from a ESA her father never told her about while she was in school.

I input the values from the 1099-Q we received due to this distribution into TurboTax. The federal calculation worked fine with no problems (other than the impact seems to be a larger than I wished!).

However, for our PA tax return it wants us to enter a "cost/basis" on our schedule D for this distribution, but box 3 (basis) on the 1099-Q is blank. Where should I find this value?

[VictorW9]

Since you used the funds for qualified expenses, the basis shouldn't matter and will continue be that way so long as the distributions are made toward qualified expenses. Use the amount that you believe it should be and make a note of it and keep it with your tax records just in case.  

You have the option to contact the custodian of the account and ask for that information. 

[rcythr]

The distribution was taxable, i.e. not for qualified expenses. So the basis definitely matters. 

The contributions were done by my wife’s father, so I feel as though our basis should be $0 since this effectively pure income on our part. Am I thinking about that correctly?

[MaryK4]

As the account beneficiary, you can enter zero as the basis, especially if you are not sure.  However, if the account was a gift, you could use the basis of the account owner if you can find the amount.

@rcythr