College posted tuition payment in different year from 529 distribution

Forum|Forum|7 years ago
March 2, 2019
1 reply
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To pay for the Spring semester, I requested payment from the 529 to the college and the check was sent on 19 Dec 2018. The school, however, was closed for two weeks and did not post payment until 02 Jan 2019. As a result, the 2018 1098-T Box 1 for payments received is significantly lower than the amount of 2018 529 distributions. How do I enter the correct amounts to avoid tax payment on what appears to be an excess 529 distribution?

Thanks for your help,

Sam.

N

NCPERSON1

please read this link and then decide if there is still a question

https://turbotax.intuit.com/tax-tips/college-and-education/what-is-irs-form-1099-q/L7MAdcKz5

when you state 'how do I enter the correct amount', I am not following this. Can you please be fore specific? enter the correct amount where (which form?) and which box number on that form are you concerned with?

who is listed as the owner of the 529 Plan and who is listed as the beneficiary of Form 1099-Q?

thx

S

sleesharkAuthor

Employee

Thanks for considering my question. The problem is the 1098-T I received does not show on Box 1 the tuition payments I made using 529 funds in 2018. The root of the problem is the 529 withdrawal occurred on Dec 19, 2018, but the university did not "receive" payment until Jan 2, 2019. So the 1098-T Box 1 amount does not include the tuition payment made on Dec 19, 2018. I've confirmed this with the university. What I would like to know is how to reflect this in my tax return to be sure I am not penalized for "over-withdrawal" of the 529 in 2018.