Form 1098-T and FAFSA Grants Question

annoyingdad
Thu, 07 Feb 2013 09:28:23 +0000

It’s not easiest to withdraw 529 funds in the same tax year you pay the expenses, that’s what is required to avoid paying taxes on the earnings and the penalty. The 1098T may be fuzzy because of issues with payments/billing/credits across tax year, but there’s nothing fuzzy about the 1099Q you get following a 529 withdrawal.