Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.
05-05-2018 02:09 PM
Hello, I pay for education expenses for my (non-dependent) daughter. I then reimburse myself from her 529 plan and mark that the distribution is for qualified expenses. I realize I can pay the school directly, but there are always other qualified expenses so it is more convenient for me to do it this way and reimburse all the costs at one time.
For the last two years, I've received follow up notices from the IRS requesting more information. I've provided them expense detail in excess of the withdrawals and they have closed the matter. This year, I suggested that they modify the tax forms to collect this information so they can stop wasting their time and mine (of course I was more polite about it!). They responded that I can attach a copy of the worksheet to my tax return or provide a statement
Since I e-file my returns I'm wondering if there is some way to include this information with the e-filed return or if this is a needed enhancement to the tax software so that I and others can avoid this problem in the future.
The Other Income interview only asks you to check the box if the distribution is taxable. Since mine is not, I don't check this box and so I don't normally fill out any related worksheets.