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03-01-2014 07:03 PM
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?
03-07-2014 02:32 PM
Welcome to the Community, this is a good question. Please login and Ask A Tax Advisor, follow the steps below to ask:
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
03-07-2014 02:45 PM
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!