removeps-groups[at]yahoo.com wrote:
- quote -

One thing is clear: any education-related benefits, whether QTP
distributions, Hope or Lifetime Learning Credit, or Tuition and Fees
deduction, will only be available in 2007 for payments made in 2007.

All of the above except QTP specifically state in Pub 970 that payments
used for tax benefits in 2007 must be made for an academic period
beginning in 2007 or the first three months of 2008. In other words, you
can't pre-pay several years' worth of tuition and get a benefit all in
one year. However Pub 970 is conspicuously silent on this item when it
comes to QTP distributions.

(side observation: this is conspicuously similar to the ability to use
HSA distributions to pay for medical expenses incurred many years in the
past...)

My comment in particular was meant: don't take money out of the QTP in
late 2007 because you know you will have a bill coming up in 2008 (for
example, you'd rather make one convenient "estimated" withdrawal than
several exact-number withdrawals). The amount of earnings you took out
in 2007 that you didn't actually use to pay qualified expenses until
2008 would be subject to tax and penalty.

-Mark Bole

--
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On Feb 15, 7:28 pm, kam...[at]panix.com (Arthur Kamlet) wrote:
- quote -

Where is this rule? I could not find it in http://www.irs.gov/publications/p970/ch08.html,
but might have missed it.

- quote -

Are you saying correct to paragraph 1 or 2?

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

In article <Gvptj.75127$k27.2077[at]bignews2.bellsouth.net> ,
Vigo <sbrivas[at]bellsouth.net> wrote:
- quote -


Correct.
--


ArtKamlet at a o l dot c o m Columbus OH K2PZH

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"Mark Bole" <makbo[at]pacbell.net> wrote in message
news:059tj.6131$xq2.4653[at]newssvr21.news.prodigy.net...
- quote -

Oops, I *did* make this mistake! My son's spring 2008 tuition was due the
first week of January so I requested a withdrawal from the 529 account in
late December to make sure it got to the college on time.

However, I did pay his 2008 tuition, room and board in late December 2007,
so can't I count those amounts as "qualified higher education expenses for
2007 " since I PAID them in 2007? If I do that, no tax is owed on the QTP
earnings - at least that's how TurboTax computes it.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Taxlover wrote:
- quote -

Don't make the mistake of taking money out in late 2007 to pay for 2008
tuition, then a portion of the earnings *are* subject to tax and penalty
for 2007.

-Mark Bole

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Taxlover wrote:
- quote -


ChEAr$,
Harlan Lunsford, EA n LA

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

<removeps-groups[at]yahoo.com> wrote in message
news:95ecb553-ed87-4718-a9c4-ea43745e7e48[at]e10g2000prf.googlegroups.com...
- quote -

anywhere?

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

On Feb 14, 8:07 am, "Taxlover" <taxlo...[at]yahoo.com> wrote:

- quote -

If you used the money for non-qualified purposes, then you have to add
a portion of it as Other Income and also pay a 10% penalty (on some
line near total Tax on page 2). Qualified purposes are tutition,
books, room and board, etc. See the publication for more details.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

I have a 1099Q for money withdrawn from my 529 to pay my college tuition. I
realize I don't have to pay taxes on the earnings, but does it even show up
on my tax return?

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >