If I withdraw some of the monies from my child's 529 plan, do I have to report it as taxable income?

ANSWER

The BIDaWIZ Team's Answer:

Yes, you will be subject to taxes for the amount you withdraw that is not for qualified educational expenses. In addition, you may be subject to an additional 10% early withdrawal penalty unless you qualify for an exception related to tax-free educational assistance. Please note that your plan provider will issue a form 1099-Q to show the withdrawal and you'll need to calculate the penalty via form 5329 which flows to your form 1040.