Question

Why did I pay taxes for taking $ out of my son's 529? I received a 1099Q and it increased my tax liability.

Forum|Forum|7 years ago
June 1, 2019
2 replies
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TurboTax Deluxe Online

C

CaronM

Did you use the money for qualifying expenses?

A

Anita01

Employee

Yo need to enter the 1098-T to show your education expenses. When you go through that interview, you'll be asked how much of the expense you want to allocate to the education credits. Make sure to leave enough to make your 529 distribution tax free. You can only use eligible expenses for one or the other, the credit or making the distribution nontaxable.