No scholarships or grants. Her parents had invested in a 529 plan for about 15 years. She went to a community college so she did not have room and board expenses. Just tuition, fees and books. If I am reading correctly then she owes a 10% penalty on the earnings not used for educational expenses.
In a message dated 11/18/2008 11:09:41 A.M. Eastern Standard Time, waymeans@verizon.net writes:
Did she receive any scholarship or grant money which may offset the distribution and reduce the penalty?----- Original Message -----From: bobva@aol.comSent: 11/18/2008 10:53 AMSubject: [taxchat] 1099-Q EARNINGS
I have a client who had a distribution of $18,946 on a 1099-Q of which the earnings were $4,552. Her educational expenses were $3,100. She would then have income of $1,452. It appears the $1,452 is also subject to a 10% penalty? Is that correct?,___
Arnie Socol
President
Ways & Means, Inc.
845-562-6070
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