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Question

Paid college tuition with 529 Savings Plan and child dropped out. Do I owe penalty and taxes on this money.

Forum|Forum|5 years ago
March 28, 2021
1 reply
0 views

$8,000 was paid from 529 Savings, $5,145 refunded and recontributed to 529. The rest the college kept. Student dropped, was only there about a month.

TurboTax Online

You or the beneficiary may receive a refund from the eligible educational institution. You may re-contribute the refund to your 529 account for that beneficiary and avoid any tax. The re-contribution must be made within 60 days of receiving the refund to avoid the taxes and penalties associated with a non-qualified withdrawal.