Do we need to report 529 Plan Withdrawals on Tax Return?

  • Withdrawals from 529 plans are not taxed at the federal and state level as long as you follow all the rules for qualifying expenses. When the 529 plan funds are used to pay for qualified education expenses, you should receive Form 1099-Q and Form 1098-T which will list the amount of the 529 plan distribution and how much was used to pay for college tuition and fees. You’ll have to report these form to the IRS.

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Bob Lin

Bob Lin, MS-MVP, MCSE & CNE Data recovery, Windows OS Recovery, Networking, and Computer Troubleshooting on http://www.ChicagoTech.net How to Install and Configure Windows, VMware, Virtualization and Cisco on http://www.HowToNetworking.com