What does this 529 worksheet organize?
A qualified tuition program (QTP), commonly called a 529 plan, can distribute money for a beneficiary. This worksheet gives you one place to list the distributions and education-related amounts that may matter when you review the year. Each record is labeled by student, tax year, date, description, and a category you choose. The totals simply add records in each category. You decide what belongs in the ledger and should retain the original documents.
Why keep distributions and expenses in separate categories?
IRS Publication 970 explains that whether a QTP distribution is tax-free depends on the beneficiary’s adjusted qualified education expenses. Its chapter 7 instructions describe adjustments to qualified expenses, including tax-free educational assistance. The publication also says expenses used for an education credit cannot also be used to figure the tax-free portion of a QTP distribution. These rules require checking what each payment covered and whether it is eligible; a gross expense total alone is not the adjusted amount.
What records should I enter?
Use separate entries for each 529 distribution, expense payment, scholarship or other tax-free educational assistance, expense amount considered for an education credit, and refund. Add a description such as a bill, receipt, account statement, Form 1099-Q, scholarship notice, or credit worksheet reference. Enter positive amounts in the category that best describes the record for your own review. If one source covers multiple students, periods, or expense types, keep notes and supporting detail so you can make the proper allocation using official instructions.
Does the summary show that a distribution is covered?
No. The worksheet does not subtract assistance or credit-used expenses from expenses, match a distribution to a bill, calculate adjusted qualified education expenses, or compare that amount with distributions. It does not decide which costs qualify under federal or state rules. It also does not calculate taxable earnings, penalties, or state tax consequences. Use the current IRS publication and plan documents, and consult a qualified tax professional when facts are unclear.
What about refunds or later assistance?
Record refunds and assistance on their own lines, including the dates received. Publication 970 discusses how refunds and some later-received assistance can affect an earlier year’s expense or credit review. The correct tax-year treatment can depend on when expenses were paid, when assistance or a refund arrived, and whether a return was already filed. This worksheet preserves those dates for review but does not determine the treatment.
Source and date: IRS Publication 970 (2025), Tax Benefits for Education, chapter 7 (accessed 2026-11-03). Check the current publication and state rules for the year you are reviewing.
Frequently asked questions
Does a positive expense total mean the distribution is tax-free?
No. The total is only the sum of entries you classified. It is not an eligibility decision or adjusted-expense calculation.
Can I use the same expense for a credit and a 529 distribution?
IRS rules restrict using the same expenses for both tax benefits. This worksheet lists credit-used amounts separately but does not allocate expenses or determine the allowable amounts.
Does the worksheet save or upload my records?
No. Records remain in the current browser page and are cleared when you clear them or close the page.
Does this cover state tax treatment?
No. State rules and plan terms may differ. Verify them with the relevant state or plan administrator.