Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted May 11, 2021 6:10:28 PM

Virginia 529 excess distribution from basis

Where do I record income from a distribution from my Virginia 529  in excess of qualified expenses for a scholarship received. The excess was less than the basis so no federal tax was due but since I originally got a state deduction I think I owe state tax but I don't know where to put it in Turbotax?

0 1 223
1 Best answer
Expert Alumni
May 11, 2021 7:51:30 PM

In the program, under Here's the income that VA handles differently:

  • scroll down to Education
  • select VA 529 Distribution or Refund

However. if not taxable on federal, there should not be a VA effect. You said the excess was less than the basis.

 

See 760 Instructions  page 28 item 34 is for distributions that are taxable on federal return. Page 25 (page 16 on the document) is for additions.

1 Replies
Expert Alumni
May 11, 2021 7:51:30 PM

In the program, under Here's the income that VA handles differently:

  • scroll down to Education
  • select VA 529 Distribution or Refund

However. if not taxable on federal, there should not be a VA effect. You said the excess was less than the basis.

 

See 760 Instructions  page 28 item 34 is for distributions that are taxable on federal return. Page 25 (page 16 on the document) is for additions.