Education Savings Account Recapture Tax
Do I need to pay this recapture tax?
- You claimed an Education Savings Account Contribution Subtraction or Credit for contributions to a 529 plan.
- A Minnesota distribution is taken from the 529 plan and used for nonqualified expenses.
What are nonqualified expenses?
Nonqualified expenses are any expenses other than those to attend a post-secondary educational institution. Expenses used for K-12 education are considered nonqualified expenses.