FOR PROFESSIONALS
Income tax center
Where do I show the beneficiary's qualified higher education expenses to the IRS?
[Excerpts from Chapter 3 of The Best Way to Save for College – A Complete Guide to 529 Plans (2015-16 Edition)]
You are not required to list or report the beneficiary's qualified higher education expenses on Form 1040 or any other income tax form. You must maintain records and be prepared to present those records in the event your return is audited by the IRS. If the distributions from a 529 plan are entirely excluded—AQHEE equal or exceed total distributions from Forms 1099-Q—no amounts need appear on Form 1040. If earnings must be reported—AQHEE are less than total distributions—they are to be included in “other income” on Line 21 of Form 1040.
Back: Can I transfer the ownership of my account to someone else?
- What are the federal income tax rules for 529 plan participants?
- How does the 529 plan administrator calculate the earnings portion of a distribution?
- Who reports any taxable earnings, the account owner or the beneficiary?
- What about state taxes?
- What are adjusted qualified higher education expenses?
- Can I claim the American Opportunity or Lifetime Learning credit in the same year that I withdraw from my 529 account to pay for college?
- How about the above-the-line deduction for qualified tuition and related expenses?
Can I claim the deduction for expenses I pay using funds from my 529 account? - Can I change the beneficiary of my 529 account?
- Can I transfer my account from one state’s 529 plan to another state’s 529 plan?
- Can I transfer the ownership of my account to someone else?
- Where do I show the beneficiary's qualified higher education expenses to the IRS?
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Free for Ameriprise Financial, Commonwealth Financial, Morgan Stanley, Raymond James and RW Baird.
Ameriprise Financial instructions
Consult with your office/branch manager for instructions.
Commonwealth Financial instructions
Commonwealth Financial Advisors, you will find your Savingsforcollege.com portal on CommunityLink in the Financial Planning Playbook under Education Planning Tools.
LPL Financial instructions
Visit the Education Planning page in the LPL BranchNet Resource Center to access your Savingforcollege.com portal.
Morgan Stanley instructions
Visit Tools and Forms in the Education Savings Products page in 3DResources to access your Savingforcollege.com portal.
Raymond James instructions
Visit the 529 Plan Resource Center on RJ Net to access your Savingforcollege.com portal.
RW Baird instructions
Visit the 529 Department page on BairdWeb to access your Savingforcollege.com portal.
