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February 3, 2021
Question

I need you guys to take out the 529 Education Plan so I can finish filing my taxes

  • February 3, 2021
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February 3, 2021

A Form 1099-Q " Payments From Qualified Education Programs" will be issued if you contribute money to a qualified tuition program, such as a 529 plan or a Coverdell ESA, and you make withdrawals from the plan to pay school expenses of the beneficiary. Your issue should be resolved if you remove the Form 1099-Q from the program.  Here are the steps:

 

In TurboTax online,

 

1.  Sign into your account, select Pick up where you left off

2.  Select Tax Tools, click on the drop down arrow

3.  Select Tools

4.  Under Other helpful links, choose Delete a form

5.  Select Delete next to the form 1099-Q and Continue with My Return

 

When you used funds from a 529 plan to pay for qualified education expenses, there is usually nothing to report on your federal income tax return.  If you did not use all the distribution amount to pay for the expenses, you will need to pay some taxes on the distribution.  In some occasions, taxpayer will receive both Form 1099-Q and Form 1098-T which list the amount of the 529 plan distribution and how much was used to pay for college tuition and fees.  To learn more how to figure out the taxable amount between the 1098-T and 1099-Q, see details here: 1099-Q and 1099-Q and 1098-T