529 funds used for K-12 special needs school

Forum|Forum|4 years ago
April 11, 2022
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I took $10k from my daughter's 529 fund to pay a portion of her tuition at a special needs residential treatment center / boarding school for students with autism. It's a qualified expense, but I didn't receive a 1098-T from the facility.

How do I enter this so that I'm not charged a penalty? Private K-12 tuition is allowed according to the IRS, but Turbotax only seems to recognize schools for "higher education" or "vocational programs."

ColeenD3

No, you don't have to do anything. Please see this HELP article and this THREAD.

Hal_Al

Employee

You can just not report the 1099-Q, at all, if your student-beneficiary has sufficient qualified expenses, to cover the distribution. When the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax will enter nothing about the 1099-Q on the actual tax forms. But, it will prepare a 1099-Q worksheet for your records.

On form 1099-Q, instructions to the recipient reads: "Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. You must determine the taxability of any distribution."