Solved: 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?
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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?

 
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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]

 

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Level 14

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

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