grandmabee Posted April 9, 2022 Report Share Posted April 9, 2022 My first one. box 1 distribution 40,000 box 2 earnings 15,000. box 3 basis 25000 spent 8,000 on tuition. I figure 40,000 - 8,000 (tuition) - 25,000 (basis) = taxable of 7,000 and also subject to 10% penalty. Goes on line schedule 1 line 8. Am I figuring this correctly? TIA Quote Link to comment Share on other sites More sharing options...
Lion EA Posted April 9, 2022 Report Share Posted April 9, 2022 I haven't had one this year, but... I think the taxable part is $8,000 X the ratio of 15000/40000 with 10% penalty on that same amount. And, can you use Room & Board against his 529 Plan distributions? Books? Etc. TTB give Qualifying Expenses: Books, supplies, equipment, room & board if at least 1/2 time, computer equipment, software, internet access, related services. TTB says Tax-free earnings = Earnings X Adjusted qualified education expenses/Total distribution Taxable earnings = Earnings - Tax-free earnings So, what TTB says. 2 Quote Link to comment Share on other sites More sharing options...
grandmabee Posted April 9, 2022 Author Report Share Posted April 9, 2022 After more research I think you are correct and I will change my thinking. Quote Link to comment Share on other sites More sharing options...
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