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Wduncan3
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Using 529 withdrawal for Educational Expenses

I purchased a computer for my son because it was recommended for a class he was enrolled in.  I transferred money from his 529 to my checking account to pay for his computer.  I received a 1099 Q for the amount.  Box 2 of the form reported earnings.  There is no associated 1098 T form.  When I enter 1099 Q form into turbo Tax and have an identical entry in educational expenses, It appears that my tax liability goes up.  My income is too high to receive any tax credit benefits, but I was under the impression that funds in a 529 account, if used for education, would not be taxable.  I am I doing something wrong?  I would like to leave the 1099 Q out of my return but it has identified me as the recipient and I am worried  that it will appear that I am not  accurately representing things on my taxes. Any thoughts?

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Using 529 withdrawal for Educational Expenses

No, you are not doing something wrong. As long as you make withdrawals only to pay for qualified higher education expenses, you won't pay income tax. The computer was not a  qualify educational expense. IRS Pub. 970 page 11, defines qualified expenses as tuition, required enrollment fees, and course materials that the student needs for a course of study as a condition of enrollment or attendance.

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