Question

Do I have to pay taxes on reimbursement from 529?

Forum|Forum|2 years ago
February 7, 2024
1 reply
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My college son is a full-time college student in his senior year. For a couple years, I paid his tuition out of pocket instead of using 529. Last year I decided to reimburse myself with the 529 money for the exact amount I paid out of pocket. I put in the 1099-Q info I got from Michigan Education Savings Program and TT shows I have to pay taxes on the "earnings" portion of the distribution. Is there any way I can claim this as qualified education money?

KrisD15

No, it can only be used to pay qualifying education in the year the distribution is made. The payments and distribution need to be in the same tax year.

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