<p>Well, I just received a bill from the IRS pretaining to the distirbutions from our 529 Plans in 2009.</p>
<p>I have all the necessary documentation and will send a response shortly.</p>
<p>However, since I do not put anything on my tax return each year regarding these distributions, am I going to get a bill from the IRS each year or was this just a random thing?</p>
<p>To prevent this from happening, have the 529 fund directly send the money to the school and you will be fine.</p>
<p>Thank you. </p>
<p>After I started this thread, I realized that I should just do a search on this forum and I then found that it appears my mistake was just what you said - having the 529 Plan send the money to me and then paying the school myself.</p>
<p>FYI…this may vary by 529 plan. In our 529 plan (Ohio), one time I had a withdrawal sent directly to the school. At the end of the year, the 1099-Q was sent to my son (in his name), not me. I am the account owner, and my son is the beneficiary.</p>
<p>cp, that is very true everywhere! if the money is sent to the college, the student’s SS number will be used. But it will be no shadow of doubt the use of funds and no explaination is needed.</p>
<p>I have never had the 529 money sent directly to the school and the IRS has never questioned my return. Not sure if that’s because there were other education related items on the return or if I just got lucky!</p>
<p>Because of timing, I had 529 withdrawal sent to me and I endorsed it over to the college. The check never went into my account, so I don’t expect any problems. The college’s FA records show this as a payment from 529 account, not from “Parent” as other payments are identified.</p>
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<p>as far as I was told, if the check is in YOUR name, YOU will get a 1099 under your SS. Whether you have to prove or not to the IRS that is a different matter.</p>
<p>We have never had any distributions paid direct to the school as they have always either been used to pay non direct expenses (off campus living expenses, a computer, books), or we have left it too late to get the check there on time to pay a school fee. The checks have always been made out to my husband as our state does not give the option for it to be made out to the student. When we request a disbursement, we always check the box that says it is for a qualified education expenses. We have not heard from the IRS (yet). We have never had any very large disbursements - don’t know if that makes a difference as far as flagging them to IRS.</p>