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Distribution from your account in 2016?


As an account owner, if you had a distribution payable to you from your Virginia529 account(s) in 2016, you will soon receive an IRS Form 1099-Q in the mail from Virginia529. If you requested a distribution payable to a school or to the beneficiary designated on your account, the beneficiary will receive the Form 1099-Q in the mail. These forms will be mailed by January 31, 2017.

Virginia529 is required to report distributions to the IRS with Form 1099-Q. If the distribution did not exceed the total amount of 2016 qualified higher education expenses, you should not need to report the distribution; however, the interplay between 529 proceeds and existing education tax benefits may impact that decision. Consult a tax professional for more information as you may have income tax consequences if the distribution exceeded qualified higher education expenses.

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