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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1 Best answer

Intuit Alumni

Jun 6, 2019 12:11:40 AM

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]

Intuit Alumni

Jun 6, 2019 12:11:40 AM

UPDATED FOR TAX YEAR 2019

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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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?