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1 reply

JanetB21
Employee Tax Expert
JanetB21Employee Tax Expert
Employee Tax Expert
October 25, 2023

Hello toniateaka,

Thanks for joining the event!

You will receive a 1099-Q for the distribution you take from the 529 plan.  If this distribution is not greater than the qualifying education expenses for the student, you do not need to report any of this distribution as income on your tax return. 

However if there are not sufficient education expenses, you may have taxable income on the earnings (box 2 of the 1099-Q).  Amounts of education expenses paid for with proceeds from the 529 plan are not eligible for educational tax credits.

529 plan and 1099-Q 

I hope that helps!
JanetB211

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T
toniateakaAuthor
Level 2
October 25, 2023

What if the funds end up being used for both 2023 expenses and 2024 expenses.  Can I only use for the year it was taken out?

J
JandKit
Level 6
October 25, 2023

Hi  

toniateaka

 

You rshould receiv a form 1099 Q for the funds that are taken from the account. Theses amounts all have to bejustifed in the year of withdrawal.

 

Have a Great Day!

 

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