I have a custodial account disbursement that I used to pay for college. Is that taxable?

[paulcofran]

I received a 1099-B from the bank for this account

[Hal_Al · Accepted solution]

Yes. A custodial account does not get the same tax breaks as a formal  college savings("529") plan. 

But the 1099-B amount is not the taxable amount. That is what the stock or mutual fund was sold for. The taxable amount is the capital gain on the sale. Long term (> 1 year) capital gains are taxed at lower rates than ordinary income.