HV Ken Posted May 19, 2011 Report Share Posted May 19, 2011 ** Never mind ** Read through Chapter 8 in Pub 970 to figure it out. Turns out in their case the IRS is only partially correct.... ** Client received a CP2000 for tax year 2009 claiming the Earnings on their 1099-Q are to be reported as taxable income. Their 529 did well - earnings of $4806 and $4189 on gross distributions of $15000 each. All of the money withdrawn from their NY 529 plan was used to make payments for college expenses. The CP2000 for this is incorrect ? Has anyone else seen this ? Thanks. Quote Link to comment Share on other sites More sharing options...
jainen Posted June 7, 2011 Report Share Posted June 7, 2011 >>All of the money withdrawn from their NY 529 plan was used to make payments for college expenses.<< As you found out from Pub 970, using the money for "college expenses" is not in itself enough to exclude earnings from taxable income. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.