DIY Products

DIY Products

Whether you’re an experienced do-it-yourselfer or doing your own taxes for the first time, this is your place to learn and share. Here you’ll find information and resources for using H&R Block’s online and software DIY solutions. You’ll also find links to more information to assist you on your DIY journey.

Posts: 1
Registered: ‎03-01-2014

1099-Q - Taxable amount?

What is the "Taxable QTP Distribution?  The TaxCut interview is not helpful in explaining this.

When I entered the Block 1 Gross Amount, TaxCut calculated that as income and I owed a significant amount of taxes.  That cannot be correct.  My parents invested in the 529 for my college.  The school got the money for tution.  How can I be taxed for this? 

Associate (Pioneer)
Posts: 336
Registered: ‎02-17-2014

Re: 1099-Q - Taxable amount?

Welcome to the Community, this is a good question.  Please login and Ask A Tax Advisor, follow the steps below to ask:

  1. type in a term in the Search box at the top of the screen.
  2. Press Enter to display search results.
  3. Click Contact H&R Block at the bottom of the search results.
  4. Click the Go button under the Tax Rules Question? section.
  5. Click Chat Now and follow the prompts to begin a chat with a Live ATA.

NOTE: If the Live ATA Chat is not available due to Hours of Operation, the button will be grayed out and the client will need to send an e-mail to a tax professional

Associate (Neighbor)
Posts: 849
Registered: ‎01-22-2014

Re: 1099-Q - Taxable amount?

Good afternoon and welcome to the Community.


I am very glad that you questioned this.  You are correct that this distribution should not be taxable if it was all used to pay for school.  There has to be a place to tell the system that it was used to pay for schooling.  Unfortunately, I am not familiar with that system so I can not tell you just where that is.  You may have to call the 800# and they can help you!

Cindy Kowalski
Senior Tax Advisor 5
24 years experience