Iowa 529 w/d question

[4kidsdad]

<p>^See [Publication</a> 970 (2012), Tax Benefits for Education](<a href=“http://www.irs.gov/publications/p970/ch08.html#en_US_2012_publink1000178531]Publication”>http://www.irs.gov/publications/p970/ch08.html#en_US_2012_publink1000178531)

Taxable earnings. Use the following steps to figure the taxable part.
1.
Multiply the total distributed earnings shown in box 2 of Form 1099-Q by a fraction. The numerator is the adjusted qualified education expenses paid during the year and the denominator is the total amount distributed during the year. </p>

<p>2.
Subtract the amount figured in (1) from the total distributed earnings. The result is the amount the beneficiary must include in income. Report it on Form 1040 or Form 1040NR, line 21.

Also, see examples 1 to 4.</p>