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What You Need to Know about 529 Distributions at Tax Time

If you had a distribution from your Virginia529 account(s) in 2017, a 1099-Q form will be mailed for tax purposes by January 31, 2018.   If a distribution was made payable to an Account Owner, a 1099-Q will be mailed to the Account Owner and will also be available via the secure online access at Virginia529.com. Simply log in to your account, locate the “View My Account” tab, and select “1099-Q(s)” from the dropdown.

Due to privacy issues, if a distribution was payable to a school or the beneficiary, the beneficiary will receive the Form 1099-Q in the mail. In these instances, 1099-Qs will not be available online.

Virginia529 is required to report distributions to the IRS with Form 1099-Q. If the distribution did not exceed the total amount of 2017 qualified higher education expenses, you should not need to report the distribution on your tax return. If the distribution exceeded qualified higher education expenses, consult a tax professional for more information as you may have income tax consequences.

Review the 2017 IRS Form 1099-Q Fact Sheet

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