Tuition Deduction and 529

[Kram BergGold]

My client paid for all college expenses with 529 proceeds. His child will not be paying taxes. I thought I would claim the $2,000 tuition deduction for him thus causing $2,000 of the money he used to be a non qualifying expense for his child. The portion of this that is taxable will be very small maybe $200 and as she has only $2,000 of wages will be non taxable. Am I doing this correctly? Also where on the return does the income go, line 21?

[BP.]

Mark, goes on line 21, do your 5329, have a look at TTB p. 12-5 top right, and remember it's just a prorated portion of only the earnings from the 529 that are potentially taxable.

[Kram BergGold]

Thanks BP

I did not have any idea about doing Form 5329. I am really glad I asked.