Mistakes to Avoid When Reporting Plan 529

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If at any time you withdrew money from your 529 college-savings plan during 2015, then you will have received Form 1099-Q for tax reporting purposes. Here are 6 mistakes you (or your tax professional) want to avoid during the process:

1. Believing that the 1099-Q amounts must be reported somewhere on your tax return
2. Relying on Form 1098-T
3. Failing to include computer costs as qualified expenses
4. Failing to account for refunds issued by the school
5. Getting too worked up about room and board expenses
6. Paying the 10% penalty when you don’t have to

The original Forbes article goes into more depth as to how and why avoiding these mistakes are important during your process of the Form 1099-Q.