Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
mq2
New Member

I am custodian for my 16 yr old grandson's 529 Edu Plan acct. I have received a 1099-INT showing $63 in int and no fed tax withheld. Does this need to be reported?

 
1 Best answer

Accepted Solutions
IreneS
Intuit Alumni

I am custodian for my 16 yr old grandson's 529 Edu Plan acct. I have received a 1099-INT showing $63 in int and no fed tax withheld. Does this need to be reported?

UPDATED FOR TAX YEAR 2019

 

No - The earnings generated in a 529 plan are not subject to federal or state income taxes while the funds stay in the account.   Contributions to a 529 plan are made with after-tax dollars. Earnings within a 529 college savings plan occur on a tax-deferred basis.

 

When the money is used for qualified education expenses, the distributions from the 529 plan are not subject to federal or state income taxes.

 

[Edited | 4/6/2020 |  11:58am PDT]

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

1 Reply
IreneS
Intuit Alumni

I am custodian for my 16 yr old grandson's 529 Edu Plan acct. I have received a 1099-INT showing $63 in int and no fed tax withheld. Does this need to be reported?

UPDATED FOR TAX YEAR 2019

 

No - The earnings generated in a 529 plan are not subject to federal or state income taxes while the funds stay in the account.   Contributions to a 529 plan are made with after-tax dollars. Earnings within a 529 college savings plan occur on a tax-deferred basis.

 

When the money is used for qualified education expenses, the distributions from the 529 plan are not subject to federal or state income taxes.

 

[Edited | 4/6/2020 |  11:58am PDT]

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

Dynamic AdsDynamic Ads
Privacy Settings
v