The 1099- Q is in the name and SS # of the parent. The student is his son. I hav edone the calculation and there is income to pay tax on. Does it go on the student's return or the parents?
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529 Taxable Income
Follow the S/S number. If it was the parents; it means they took money out of reasons other than education of the son. Earnings go on line 21 and also on form 5329 if parent is under 59 1/2. Sorry for the bad news. Go to IRS Web Site and read Pub 970, pages 43 to 53. There is a tax work sheet on these pages. -
No
The money was used to pay for son's college. I have the 1098-T Form.Comment
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Per TTB
Reporting. The taxable amount is reported as Other Income on
Form 1040. If any taxable amount is reported, Part II, Form 5329, is
required to calculate additional tax even if an exception applies.
Who is taxed? The taxable part of a distribution is taxed to:
• The designated beneficiary of an ESA.
• The owner of a QTP unless the distribution was
paid directly to the designated beneficiary or to an
eligible institution for the benefit of the designated
beneficiary.Comment
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