Skip to main content
May 2, 2021
Question

I received a 529 distribution for my daughter and I entered the amount in TT. It was used for school expenses but I wasn't asked for this info and now I can't remove it.

  • May 2, 2021
  • 1 reply
  • 0 views
No text available

1 reply

Hal_Al
Employee
May 2, 2021

In TurboTax (TT), enter at:

Federal Taxes Tab (Personal for H&B version)

Deductions & Credits

-Scroll down to:

--Education

  --ESA and 529 Qualified Tuition Programs (1099-Q)

     Click Update

On the next screen check  yes, you received a form 1099-Q

The next screen is the 1099-Q summary.  Click delete next to the name of your plan.

 

You can just not report the 1099-Q, at all, if your student-beneficiary has sufficient educational expenses, including room & board (even if he lives at home) 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. You would still have to do the math to see if there were enough expenses left over for you to claim the tuition credit. You also cannot count expenses that were paid by tax free scholarships. You cannot double dip! 

 

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."