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jpaul7272
March 25, 2024
Solved

I am a college student with a simple tax return. told I need to upgrade because of additional tax on excess contribution or deduction(form 5329)? I do not have a 1099R?

  • March 25, 2024
  • 1 reply
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Best answer by SusanY1

If you used the entire distribution from your 529 plan for qualified expenses, remove the 1099Q information from TurboTax.  That should remove the penalty and the need to upgrade.  The IRS does not require you to report anything from 1099Q when it is used for qualified expenses. 

1 reply

M
MayaD
March 25, 2024

To be able to answer your question, you need to provide more information.

  Form 5329 is used  to report additional taxes on: 

• IRAs, 

• Other qualified retirement plans,

• Modified endowment contracts, 

• Coverdell ESAs, 

• QTPs, 

• Archer MSAs,

• HSAs,  

• ABLE accounts

 

Did you receive taxable distributions from Coverdell ESAs, QTPs, or ABLE accounts?

 

for information on who must file form 5329, check :2023 Instructions for Form 5329

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    J
    jpaul7272Author
    March 25, 2024

    Thanks. I received a 1099Q- payment from Qualified Education Program for my 529 that I used to pay for school. Does this really requires a form 5329?

    SusanY1
    SusanY1Answer
    March 25, 2024

    If you used the entire distribution from your 529 plan for qualified expenses, remove the 1099Q information from TurboTax.  That should remove the penalty and the need to upgrade.  The IRS does not require you to report anything from 1099Q when it is used for qualified expenses. 

    **Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"
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