Client has over $71K in earnings from 529 plans for grandchildren who are not going to college. The other options available to avoid the 10% penalty are not available.
(1) Since she won't receive a 1099Q or Tuition 1098-T, should she be receiving a 1099Misc?
(2) where does she enter the full distribution (close to $95K), or does she just report the earnings?
(3) where does she enter the 10% penalty on the earnings portion ...on Form 5239? Part I, D?
(4) what type of income are the earnings considered? interest, dividends, other income?
This discussion has been locked. No new contributions can be made. You may start a new discussion here
If she pulls money from the account she WILL get a 1099Q and you'll enter it in the program, the software will put it where it goes (and compute the penalty on the 5329), I believe it lands on the Other Income line of the return.
You have clicked a link to a site outside of the Intuit Accountants Community. By clicking "Continue", you will leave the community and be taken to that site instead.