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Level 2
March 5, 2020

taxable 1099-Q distributions

  • March 5, 2020
  • 1 reply
  • 9 views

I am having trouble getting PTO to tax the non-qualified portion of the distribution.

Grad student emptied 529 account after graduation.  Her qualified expenses are for non-tuition expenses.  She will not receive a 1098-T and does not have any tuition expense.  It doesn't seem to matter what I put into the "qualified expenses for higher learning"  nothing shows up as taxable. Is there another place that info has to be entered?

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    1 reply

    Level 3
    March 5, 2020

    Do you have any earnings entered for the distribution from the educational savings account? Only the portion of the distribution attributable to earnings (vs basis) is taxable.

    TMMFAuthor
    Level 2
    March 7, 2020

    yes I understand, I have distribution, earnings, and basis all entered, along with the amount of Higher Education.  I have calculated it by hand so I know what the amount needs to be - just can't make the program do it.