Just received a phone call from a client. She just turned 30. According to her you have to take Coverdale out when you turn 30. She just received a check from Coverdale set up by her parents when she was young. She is no longer in school. What potion is taxable? Does she have to pay penalty?
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Originally posted by liberty View PostAccording to her you have to take Coverdale out when you turn 30. [...] What potion is taxable? Does she have to pay penalty?"You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard
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Originally posted by liberty View PostJust received a phone call from a client. She just turned 30. According to her you have to take Coverdale out when you turn 30. She just received a check from Coverdale set up by her parents when she was young. She is no longer in school. What potion is taxable? Does she have to pay penalty?
(d) Tax treatment of distributions
(1) In general
Any distribution shall be includible in the gross income of the distributee in the manner as provided in section 72.
(4) Additional tax for distributions not used for educational expenses
(A) In general. The tax imposed by this chapter for any taxable year on any taxpayer who receives a payment or distribution from a Coverdell education savings account which is includible in gross income shall be increased by 10 percent of the amount which is so includible.
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Originally posted by New York Enrolled Agent View Postin the manner as provided in section 72."You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard
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Originally posted by liberty View Post. What portion is taxable? Does she have to pay penalty?
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