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February 12, 2025
Question

How do I report a taxable withdrawal from 529 account on Turbo Tax. Only some funds were non-AQEE. Turbo tax has no where to enter this. Schedule 1, form 1040, line 8

  • February 12, 2025
  • 1 reply
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Gross distribution is 30,000. Non qualified withdrawal amount of $7000. How do I enter this to Schedule 1, form 1040, line 8? Turbo tax only gives option to enter all 1099-Q

    1 reply

    AmyC
    Employee
    February 12, 2025

    You will enter the 1099-Q. You don't mention the basis so I am going to assume you are aware that $7,000 is the taxable amount.

    • If you had education expenses, room and board, books, etc for $23,000 then the program will figure out the taxable $7,000. 
    • If you did not use the money on school expenses and $7,000 is the taxable portion above your basis, you can select that you did a rollover and did not roll it all, Then you can enter $23,000 or whatever amount makes the $7,000 taxable. The program asking about rollovers is not part of your return, just part of the calculations to get the right amount on your tax return.

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