MD 529 disbursement question

[Anonymous]

Hello,

This is the first year that I have taken a 529 withdrawal and not sure how to report this in turbo tax. Here is the scenario: Withdrew about $35k in 2025 for qualified education expenses at UMD: about $32k tuition, room, board and $3k computer and books all for my kid who is a freshman and is a beneficiary of the account.

The first withdrawal for fall semester and computer of about $18k was transferred into my (parent) checking account and then I paid the bill from there. For this, I received a 1099Q with my name and soc sec#.

For the second semester withdrawal of $17k, I had the transfer made directly to UMD. For this we received a 1099Q with my kids name and soc sec #.

Turbo tax is suggesting that I enter the $18k distribution on our married file jointly taxes but I do not see a place to offset it with qualifying expenses? When I try to enter the 1098T in turbo tax it says to exclude because it is for my son.

Any ideas how to fix?

[Anonymous]

I didn’t think you had to report anything to the IRS as long as the withdrawal was all for qualified expenses. ChatGPT confirmed that, for what it’s worth.

[Anonymous]

Yeah if you know your 529 withdrawals are less than your eligible expenses and you aren’t trying to use the AOTC I just wouldn’t enter either the expenses or the withdrawals into turbotax.

Here’s a recent thread from bogleheads discussing this

https://www.bogleheads.org/forum/viewtopic.php?p=8675574#p8675574

[Anonymous]

Thanks!

[Anonymous]

Don’t enter anything if it’s all qualifying.