do 529 withdrawals count as income 
529 withdrawals on the contributed amount do not count as income that needs to be taxed as the amount was already taxed earnings do not need to be taxed either as long as withdrawals don t exceed the beneficiary s adjusted qualified education expenses for the year 14the bottom lineform 1099 q ensures you re paying your appropriate taxes on distributions from a coverdell education savings account esa or a 529 plan if the form indicates you owe taxes this will need to be included on your state and federal tax returns if you need assistance seek out the help of a professional tax advisor 