Tax documents to arrive this month
This month, my529 will send tax documents related to your my529 account transactions. These documents may help you prepare your 2021 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 2021, my529 will send you an IRS Form 1099-Q (Payments From Qualified Education Programs) by January 31, 2022. 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 2021. You do not need to report the distribution on your tax return if you used a withdrawal for qualified education expenses (including K-12 tuition expenses of up to $10,000 per beneficiary per calendar year, certain apprenticeships and repayments of certain student loans).
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% federal tax penalty on the earnings portion also may 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 2021, my529 will send Form TC-675H (my529 Tax Statement for Contributions, Withdrawals and Transfers) to you by January 31, 2022. Use TC-675H to claim Utah state income tax benefits and/or report nonqualified withdrawals, rollovers and transfers on your 2021 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 audits you.
If you do not receive your Form 1099-Q or your TC-675H by January 31, 2022, you can access the forms by logging into your account at my529.org or contacting my529.