Received a 1099-Q for a withdraw from qualified 529 account for my adult non-dependent son. All of this withdraw was used for education expenses. I am able to enter the 1099-Q into TurboTax. I unable to enter education expenses for the non-dependent. The program is showing I need to pay tax on the withdraw. Any help on how to rectify this situation?
If the funds were used for educational expenses, you can delete the 1099-Q entry. Unfortunately, TurboTax does not allow the entry of expenses for non dependents.
Thanks, I have read that in several posts. Seems risky to me.
Hello,
There was no problem entering expenses for Non-dependents in 2024. I suspect there needs to be a software update for Turbotax Deluxe to allow expenses to be entered this year. I have several 1099-Qs for my children and I can't enter any of them at this time.
Unless you need to report taxable distributions on a 1099-Q, you should not enter it on the return. If you're not sure, TurboTax can help you make this determination for dependents.
When there are no taxable distributions that transfer to the tax return, nothing is submitted to the IRS about any entries that you make into TurboTax regarding the distribution.
I realize it can cause some anxiety to hear "just leave it off" regarding an official tax form. However, this is what the IRS expects. You may find some comfort in looking on the back (or bottom) of the form itself, where this is noted in the second sentence under "Instructions for Recipient".
Maintain the form in your files, along with your receipts - just in case there is any question later on as to the taxability of the distribution.