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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28081
Experience:  Taxes, Immigration, Labor Relations
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I have a 529 account set up education and payed for

Customer Question

I have a 529 account set up for kids education and payed for daughters tuition and fees for college she is 19 and has part time job and will file taxes for the first time this year. I received 2 1099Q forms one has recipients social as my wifes and one has social as my daughter. Can I or should I put the earnings on my wife and I's joint tax return or split earnings between ours and my daughter based on 1099q socials being different or does it matter as long as it is being claimed as income.
Submitted: 6 months ago.
Category: Tax
Expert:  Lev replied 6 months ago.
Generally distributions from 529 accounts are deported to beneficiaries and not to parents.However in some situations they may be reported to parents.If all distributions were used to pay qualified educational expenses and your daughter is a dependent on your tax return - that makes no difference to whom distributions are reported - and none are taxable.If none distributions are taxable - no need to report such distributions on your tax return.Questions?
Customer: replied 6 months ago.
ok thanks. I put the info on my wifes and my joint return because m daughter is dependent on our return she lives at home and commutes to college.
Expert:  Lev replied 6 months ago.
As long as you claim your daughter as a dependent - that makes no difference - and you would not need to report distributions that if total distributed amount was used for qualified educational expenses.However - when you will request distribution in future - you might want to be careful.
Expert:  Lev replied 6 months ago.
For instance if you will pay your daughter's educational , but for some reason - you daughter would not be your dependent anymore - distributions reported to your spouse would be taxable on your joint tax return.Because only educational expenses paid for you and your dependents are considered.So that reporting could matter in some circumstances.But so far - these distributions are not taxable and no need to report - as long as used for qualified educational expenses...I appreciate if you take a moment to rate the answer.Experts are ONLY credited when answers are rated positively.If you still have any doubts, need clarification - please be sure to ask.I am here to help you with all tax related issues.