Education Trust Funt Distribution on State tax form

Forum|Forum|2 years ago
April 7, 2024
1 reply
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Thanks all for all your help with Queries. I'm not entering any 1099-Q& 1098T forms on Federal form. Filing MJF.

Can I add 1099-Q gross distributed amount in State Tax form to get tax refund? This CT state form? Thank you.

AmyC

Employee

A distribution would increase your income and lower your refund. I can't fathom why you would want to pay taxes on income that isn't required. The CHET credit is for contributions, not distributions. See Chet

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taxman_usAuthor

Thank you and I thought the same. But when I enter distribution (around 7K), my state refund went up by

Thank you, Thats what I thought but when I added distribution in CT state tax form under:

'Education Trust Fund Distribution- about 7K, getting about $500 additional refund.

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TT help notes reads:

When you take distributions from the Connecticut Higher Education Trust account, to pay for qualified higher education expenses, federal income taxes are based on the student beneficiary's rate, which is likely to be lower than the tax rate of the Account owner. A distribution used to pay for your beneficiary's qualified higher education expenses is exempt from Connecticut income tax.

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both 1098T and 1099-Q on child name and I'm not filing any forms in federal tax. Just want to make sure this is correct, and I can claim that.

AmyC

Employee

Since it was not included in your federal income, it can't be subtracted from the state.

Page 10 of CT instructions states:

Subtract the amount of any distributions you received from the CHET fund as a designated beneficiary to the extent includible in your federal adjusted gross income.

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