I received $1,000 from a grandparent on a 529 plan. I did not go to school as planned but will this year. Do I pay taxes on this money?

If you received a 1099-Q for the distribution, here is how you report it.

Form 1099-Q reports distributions and benefits from Coverdell education savings accounts and 529 plans.

The 1099-Q is reported on the recipient's tax return (the person whose Social Security number is on the form). If the funds went directly to the school, consider the student as the recipient, and if the student is your dependent, you should enter the 1099-Q on your return.

Here's how to enter your 1099-Q in TurboTax:

1. Open or continue your return.
2. Select Federal and then Deductions & Credits.
3. Scroll down to the Education section under All tax breaks.
4. Select, Show more and select Start or Revisit next to ESA and 529 qualified tuition programs (Form 1099-Q).
5. Follow the screens to enter your info.