Two Documents You May Need When You Prepare Your 2017 Tax Returns
Are you ready to do your taxes? Before you start, ask yourself the following questions. Your answers will determine which tax documents you may need from UESP to prepare your federal and/or Utah state income tax return.
- Did I withdraw money from my UESP account in 2017?
- Did I roll over money from my account to another 529 plan in 2017?
- Am I a Utah taxpayer who contributed to, withdrew from, or transferred money to a UESP account?
Federal Income Tax Return
If you withdrew money or rolled over money from your account in 2017, UESP is required to issue you IRS Form 1099-Q (Payments From Qualified Education Programs) by January 31, 2018. 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 form reports the total of all withdrawals you made in 2017. You do not need to report the portion that is earnings on your tax return if you used a withdrawal for qualified higher education expenses, such as tuition and fees; required books, supplies, and equipment; computers and internet access; and certain room and board costs.
If you used a withdrawal to pay for nonqualified expenses, the earnings portion is subject to federal income tax as ordinary income. An additional 10 percent federal tax penalty on the earnings portion also may apply. Utah taxpayers will need to return any previously claimed Utah state income tax credit or deduction.
If you do not receive Form 1099-Q, contact UESP. The form is also available online at my529.org through Account Access.
Utah Income Tax Return
If you are a Utah taxpayer who contributed to, withdrew from, or transferred money to a UESP account in 2017, UESP will issue form TC-675H, Utah Educational Savings Plan Tax Statement for Contributions, Withdrawals and Transfers, to you by January 31, 2018. Use TC-675H to claim Utah state income tax benefits and/or report nonqualified withdrawals, rollovers, and transfers on your 2017 Utah state income tax return.
UESP will also send a copy of your TC-675H form 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 audits you.
If you do not receive a TC-675H, contact UESP. The form is also available online at my529.org through Account Access.
See the Program Description for more information about the TC-675H as it relates to the Uniform Gifts to Minors Act/Uniform Transfers to Minors Act (UGMA/UTMA) custodial accounts and accounts owned by Utah trusts or corporations.