I understand that the SALT deduction is maxing out at $600k of income so you can only deduct 10k and our income was under $500k but in the review at the end, there is an "other income" listed that takes the income to $600k which includes "interests and dividends" (makes sense) but also counting qualified 529 distributions. All the distributions were used for education expenses for our son so I did not think they would be count as income? Or does the MAGI count those as income?
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If you received a 1099-Q and the full distribution was used on qualified education expenses, you should delete it as the form does not represent taxable income. When you receive IRS Form 1099-Q, you'll need to report this information on your tax return if the distribution is used for non-qualifying expenses.
If your distribution matches or is less than the qualifying educational expenses, you don't need to report it as income; however, any excess is typically taxable and could be subject to a penalty. See 1099-Q
How to delete forms in TurboTax Online
How to delete forms in TurboTax Desktop
WOW! I thought I had to report it - Thank you so much! So I leave all of the tuition and room and board expenses under the deduction section but I can delete the 1099Q from the income section - thank you so much!
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