Skip to main content
Level 2
Mar 5, 2020 8:40 PM UTC

taxable 1099-Q distributions

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?

    This topic has been closed for replies.

    2 replies

    Level 3
    Mar 5, 2020 9:11 PM UTC

    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
    Mar 7, 2020 5:02 PM UTC

    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.