If by account you mean school account, then no, there are no tax implications. Even if the 529 money is first going to a savings or checking account owned by your daughter for eventual payment of the school bill, it’s highly unlikely that there would be any tax implications, as long as the entire amount of all withdrawals was qualified.
Other than what? It sounds like she has 0 income so she doesn’t need to file. Are you asking if receiving a 1099Q requires her to file? No, it doesn’t.
I know it has no tax implications.
I only wondered if it triggered a tax filing, even though no tax would have to be paid.
I think @annoyingdad answered my question.
Well, if it triggered a tax filing, that would be a tax implication. Even though Box 2 of the 1099-Q is marked “Earnings,” that in and of itself is nothing to worry about, unless any of the 529 withdrawals were spent on non-QEE.
sometimes you are required to file taxes even though in the end you may not owe any taxes.
Any way I think I got my answer. Don’t need to file taxes.
Found this from Turbo tax, which agrees with the advice given here:
There is some really good advice on this thread but it is still very confusing to me! I understand that room and board scholarships are taxable, but who files this tax - student or parent? This year my child did not work. Shod he file tax return only claiming this scholarship money or do I claim it? Is there a law governing this choice or is it up to us? Thanks. We are just trying to figure out what the tax obligation will be.
Money earned by your kid is filed by your kid…not you…and that includes taxable scholarships.
Rather than reopening older threads, please begin a new thread with your question.