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kitty464
Feb 7, 2014, 12:03 PM
If I withdraw money from my 529 college savings do I claim this on my taxes even though my parents claim me as a dependent? Also can I use my tuition payments as a write off?

ebaines
Feb 7, 2014, 12:22 PM
For federal tax purposes the income is tax free, as long as it's used for qualified higher education purposes.

kitty464
Feb 7, 2014, 12:29 PM
Who would be responsible for claiming this if it wasn't used for education purposes? And who is able to use the tuition payments as a write off? Could tuition be used to offset the penalties for early 529 withdrawl?

AtlantaTaxExpert
Feb 7, 2014, 12:52 PM
Kitty,

If the 529 withdrawal is LESS than your tuition, then there is no tax due, as the withdrawal is assumed to be used to pay the tuition.