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1099Q taxable distribution

I have a 529 for my daughter who is now an adult .  This year a distribution in the amount of 10,158 was received to pay her college expenses.  The distribution show a gross distribution of 10,156,earnings of 4,128.23 with a basis of 6.027.77.  I recorded the expenses 10,156.  Turbo tax is reporting that the earnings are taxable.  Why?

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1 Reply
KrisD15
Employee Tax Expert

1099Q taxable distribution

Who was issued the 1099-Q you or the student?

Is the student claimed as your dependent or is the student filing as an independent taxpayer?

Does the student have Form 1098-T?

Did you pay and enter Room and Board expenses? 

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