asked

A taxpayer takes a distribution of $40,000 from his 529 account to pay for his college tuition. Of the $40,000, $15,000 is earnings and $25,000 is basis. The taxpayer's Form 1098-T shows tuition payments of $30,000 in block 1. The additional $10,000 distributed was for on-campus room and board. Is a portion of the $15,000 of earnings taxable?

May 2nd, 2024

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