Does anyone know how I can access Schedule 3, line 6z in TurboTax? I click through the Credit screens under Deductions and Credits but can't get find access to line 6z.
Our Edvest distribution to our son mistakenly listed my spouse as the recipient of a 1099-q distribution. The College Savings distribution was not for eligible expenses. EdVest will not correct the 1099 for the distribution that went directly into our son's bank account because we originated it online. I am planning to reverse the taxable earnings portion on Schedule 1, but I can't find a way to access Schedule 3, line 6z in TurboTax in order to reverse the additional 10% tax. I may need to file in paper, but want to ask here before I resort to that.
If your Social Security Number is listed on the 1099-Q (and it would be if you made the distribution) you are responsible for the tax.
Going forward, if the account will not be used for education, it might be rolled into a Roth account and bypass the penalty tax.
“Under SECURE 2.0, it will soon be possible to perform a rollover from a 529 educational savings plan to a beneficiary's Roth IRA up to a certain dollar limit. Many of our clients have leftover money in their 529 plans after their children finish college and may be able to use this new rollover provision.”