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D
don1976
Level 2
March 13, 2024
Question

529 plan

  • March 13, 2024
  • 1 reply
  • 14 views

distribution from 529 plan to pay 10,000 student loan shows up as taxable distribution when paid to owner and not the beneficiary

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1 reply

T
Terry53029Intuit Community Champion
Intuit Community Champion
March 13, 2024

You have to scroll almost to the bottom of the 1099Q worksheet, " computation of taxable distribution" to enter amount paid toward loans

    D
    don1976Author
    Level 2
    March 18, 2024

    yes I had already done that and all info is entered correctly. The program treats the 529 distribution to payoff a student loan as taxable if paid to the parent vs allowable if paid to the beneficiary. I do not believe this to be correct as i do not see anything in tne IRS publication that would indicate the above. Should be qualified either way in my opinion

    T
    Terry53029Intuit Community Champion
    Intuit Community Champion
    March 18, 2024

    I've just done one for a client. She took distribution, but beneficiary was her son. I went to bottom of 1099Q worksheet put amount paid towards loan, and none of it showed up as taxable, as it should.

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