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?
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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?
For federal tax purposes the income is tax free, as long as it's used for qualified higher education purposes.
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?
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.
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