<p>Just rec'd the 1099-Q for the 529 plan I have for my son. There's a number in the earnings box. Do I need to report that as my "income" or does my son as he is the recipient and the form has his SSN and it all went to his college? I HOPE it's not me (but think it will be) as my 2nd job (to help pay for this school) didn't take any Fed. taxes out (I put too many exemptions on the W-4) and I'm gonna get hit on those untaxed earnings as well.</p>
<p>Was it all used for qualified education expenses? If so you do not report it in your taxes at all. Just keep it, and the 1098 from school showing expenses paid, filed with your tax papers. That is the whole point of a 529 account. The earnings are not taxable as long as they are used for qualified education expenses.</p>
<p>See IRS 970 pages 54-57 for more details. While you are there read through and see if you qualify for any other tax credits such as the hope tax credit.</p>