529 refund received on '23 for tuition paid in '22

Forum|Forum|1 year ago
April 17, 2024
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I paid my daughter's Spring 2023 tuition in 2022 from a 529. She received a refund in 2023. This refund was redeposited into the 529. TurboTax will not allow me to report the redeposited refund on the 2023 return because it exceeds the amount that was withdrawn from the 529 in 2023.

Best answer by Hal_Al

You have nothing to report, just don't enter it in TurboTax.

References:

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."
IRS Pub 970 states: “Generally, distributions are tax free if they aren't more than the beneficiary's AQEE for the year. Don't report tax-free distributions (including qualifying rollovers) on your tax return”.

Hal_AlAnswer

Employee

You have nothing to report, just don't enter it in TurboTax.

References:

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."
IRS Pub 970 states: “Generally, distributions are tax free if they aren't more than the beneficiary's AQEE for the year. Don't report tax-free distributions (including qualifying rollovers) on your tax return”.