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Level 5
March 5, 2026
Question

student age 24 has 529 distribtion which e ntirely used for QEE, do I file return anyhow

  • March 5, 2026
  • 1 reply
  • 7 views

SO student age 24. lives at home with parents and goes to grad school full time online.  No job no other income.  He had 529 distribution which covers his tuition and books all qee.  Research says no return needed for him 

 

1099 q is in students name.   I don't think he will have any matching issues like irs looking for a form to prove he didn't have any income from this?I don't want to prepare and bill parents for a return with basically no income.  

DO i just warn parents they  might get a notice in 18 months ?

1 reply

kobe22
Level 5
March 5, 2026

I wouldn't file it especially because there is no tax implication since the money was used for qee. They probably won't even receive a notice.

Level 8
March 5, 2026

Since student is dependent of parents, are parents claiming Lifetime Learning Credit?  If yes, then need to know more specifics BUT student may have taxable income, depending upon what is on the Q and how much parents are using on the T for the credit.