Yardley CPA Posted April 3, 2017 Report Share Posted April 3, 2017 Client received 1099-Q for funds distributed from her 529 to pay tuition expenses for her non-dependent daughter (daughter is taken on ex-husbands return). I recognize the client cannot deduct educational expenses for her non-dependent, but how do I account for this distribution from the 529? She provided me with a copy of the 1099-Q and the 1098-T. Is the distribution even reflected on Line 21 or on some other portion of the return? Quote Link to comment Share on other sites More sharing options...
Richcpaman Posted April 3, 2017 Report Share Posted April 3, 2017 I just put it to Line 21. If the funds were used for QEEE and Non-taxed, then I show the earnings, and then another line that I subtract out the amount showing a net of -1. That way the worksheets print and the line item gets efiled to the IRS. Avoids any CP-2000's as well. Rich 3 Quote Link to comment Share on other sites More sharing options...
Yardley CPA Posted April 3, 2017 Author Report Share Posted April 3, 2017 Thank you, Rich. Quote Link to comment Share on other sites More sharing options...
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