forcing upgrade and form 5329?

Forum|Forum|1 year ago
February 3, 2025
1 reply
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Turbo tax is forcing me to upgrade and create a form 5329. I am a full time med student living on student loans. I do not have a retirement account. I took a distribution from my 529 account in the exact amount of the cost of the required items I needed for school. That is all. Why is it doing this and how do I get around it. I'm not paying to file when I owe $0. Do I really even need to file since I had no income?

AmyC

Employee

You should not be entering the Q since it was all for allowed expenses, room and board, tuition, etc. Only wages, taxable scholarships, etc would be in your income. If this was your only income, you do not need to file a return as there is nothing to report.

Take a quick quiz to see if you need to file, Filing requirement

IRS Publication 970, Tax Benefits for Education states:

If the entire 1099-Q went to qualified expenses, room and board, tuition, etc then you do not need to enter the form. Tuition paid for the first 3 months of the next year also qualify, see page 12, What Expenses Qualify, and page 52 for qualified distributions.

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