my529 will send tax forms this month

This month, my529 will send tax documents related to your my529 account transactions. These documents may help you prepare your 2022 tax returns.

Federal income tax return

If you withdrew funds from your 529 account or rolled over money to another qualified 529 plan from the accounts you owned in 2022, my529 will send you an IRS Form 1099-Q (Payments From Qualified Education Programs) by January 31, 2023. If the withdrawal was sent to the account’s beneficiary or to an eligible educational institution, the beneficiary will receive Form 1099-Q.

The 1099-Q reports the total of all withdrawals you made in 2022, without distinguishing between qualified and nonqualified expenses. You do not need to report the distribution on your tax return if you used a withdrawal for qualified education expenses.

If you withdrew funds to pay for nonqualified expenses, the earnings portion is subject to federal income tax as ordinary income. A 10% federal tax penalty on the earnings portion may also apply.

Utah income tax return

If you are a Utah taxpayer who contributed to, withdrew from, or rolled money into or out of your my529 account(s) in 2022, my529 will send Form TC-675H (my529 Tax Statement for Contributions, Withdrawals and Transfers) to you by January 31, 2023. Use TC-675H to claim Utah state income tax benefits and/or report nonqualified withdrawals, rollovers and transfers on your 2022 Utah state income tax return.

my529 will also send a copy of your TC-675H to the Utah State Tax Commission. You do not need to attach your TC-675H to your Utah state income tax return. Keep your TC-675H to substantiate your claim for a tax credit if the Utah State Tax Commission conducts an audit.

If you do not receive your Form 1099-Q or your TC-675H by January 31, 2023, you may access forms by logging into your account at my529.org or contacting my529.