529 College Plans
Feb 25, 2018 09:45:26 #
Okay, here's what I did. My grand-daughter graduated high school last year and I bought her a Laptop Computer to be used when she started College in the Fall. She had already been accepted into College and had a student Id Number. I paid for the laptop myself and then reimbursed myself from her 529 College Fund. I am the administrator of her 529 College Fund. I know laptops are a qualified college expense. I received a 1099-Q from the 529 plan showing the distribution and showing me as the recipient of the money. Question. How the heck do I file this on my tax return?
Feb 25, 2018 09:49:22 #
Don't trust us, call your accountant. I think that you already paid the income tax on the income and that she has no tax implication, but that is just my understanding of the program.
Feb 25, 2018 09:56:23 #
Feb 25, 2018 10:02:11 #
Feb 25, 2018 11:35:09 #
I agree, don’t trust us, BUT if you use a tax program (TurboTax) they will ask if you received any 1099’s. You probably will report that in that section. Intuit has “frequently asked guestions” you might find the answer there.
Feb 25, 2018 12:18:10 #
dirtpusher wrote:
Yep, I have been putting money in her college fund for many years. That's what is was put there for. She asked for a laptop to use at college and so the withdrawal was made for that purpose.Took money from her college fund.
Feb 25, 2018 12:19:11 #
Dave327 wrote:
I agree, don’t trust us, BUT if you use a tax program (TurboTax) they will ask if you received any 1099’s. You probably will report that in that section. Intuit has “frequently asked guestions” you might find the answer there.
I use Turbo Tax to file. No mention of a 1099-Q when I go through the program.
Feb 26, 2018 07:02:04 #
Jaackil
Loc: Massachusetts
Yes it does. Where it asks about 1099 income. It firsts asks if you have 1099’s then it will ask more questions about what type of 1099 it is unless you are trying to file an ez which you can not do with a 1099 of any kind.
Feb 26, 2018 07:42:51 #
I am thinking you should have let her make the withdrawal. As I understand the rules, I have a 529 for my grandaughter, only she will be able to withdraw the money tax free. The money will only be tax free if used for educational purposes. I am not sure but I think you erred when you made the withdrawal. Check with an accountant however because an accountant I am not. I just like to read the fine print,
Feb 26, 2018 07:50:25 #
Money can be withdrawn from a 529 anytime as long as the money is for the student, but I’m not so sure about your spending it. You’d have been safer if you’d have had her withdraw the money and buy the computer herself. You had better check with a tax accountant about whether or not you can get yourself out of this one. I’m sure there’s a way, but you need a pro’s advice on this one because it’s a gray area.
Feb 26, 2018 08:35:35 #
Fstop12 wrote:
Yep, I have been putting money in her college fund for many years. That's what is was put there for. She asked for a laptop to use at college and so the withdrawal was made for that purpose.
Nothing wrong with that. The fund you set up was for her and the laptop is for her. You did your granddaughter a solid. I wonder if the naysayers do or did as much?
Feb 26, 2018 10:14:50 #
Feb 26, 2018 15:11:47 #
Feb 26, 2018 15:28:34 #
Feb 26, 2018 15:29:06 #
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