Q. I see where I can manually enter the spring semester tuition and room and board amounts not included in the 1099-T to avoid being taxed on the distributions but would the IRS have trouble with that?
A. We don't know. It's a common question, in this forum, and so far there has not been a definitive answer. But, it appears that "everybody" is doing it.
Technically, you are not in compliance. From Pub 970 (page 60: To determine if total distributions for the year are more or less than the amount of qualified education expenses, you must compare the total of all QTP distributions for the tax year to the adjusted qualified education expenses.
For more detail, see these previous posts:
https://ttlc.intuit.com/community/college-education/discussion/529-provider-distributed-funds-on-12-...
https://ttlc.intuit.com/community/college-education/discussion/i-took-a-529-distribution-in-2021-for...
and this reference:
https://www.savingforcollege.com/article/timing-of-529-plan-distributions-must-match-qualified-expen...
