turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

spckcc
New Member

SALT deduction and other income

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?

 

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

2 Replies
DawnC
Expert Alumni

SALT deduction and other income

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


 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
spckcc
New Member

SALT deduction and other income

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!

 

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question