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March 20, 2024
Question

NY 529 PLAN NON QUALIFIED WITHDRAWAL

  • March 20, 2024
  • 1 reply
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RECEIVED A 1099Q FOR 31,850.  ONLY 1,850 WAS USED FOR EDUCATON EXPENSNES.  THE OTHER 30,000. WAS NOT USED FOR EDUCATION EXPENSES.  TURBO TAX CALC THE TAXABLE PORTION BASED ON THE EARNING AND BASIS ON THE 1099Q. MY PROBLEM IS WITH NYS.  IT INCLUDED THE 17,302 AS INCOME BUT THEN THE 17,302 WAS SUBTRACTED OUT OF INCOME.  DON'T UNDERSTAND WHY IT IS BEING SUBTRACTING OUT.  IT SHOULD BE TAXABLE AND I DONT KNOW HOW TO CORRECT THIS.

 

    1 reply

    DawnC
    Employee
    March 20, 2024

    Go back through the NY return.   On the screen titled Changes to Federal Income, review the entries next to New York 529 college savings account activity.   The second question asks about nonqualified 529 withdrawals.   You should answer YES there.   On the next screen, report the nonqualified portion of the distribution.  

     

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