529 Over-distribution - Who pays the taxes?

[Timbo7]

For a 529 over-distribution, who pays the taxes?  The 1099-Q and the money went to me (the parent) but was used to pay for our son's degree-related expenses that apparently were not "qualified" expenses.  There seems to be no way for him to enter the 1099-Q on his tax forms since the 1099-Q has my SSN.  There are no scholarships, grants, or loans involved. 

[MaryM428]

Your son does not enter the 1099-Q on his taxes.  The 1099-Q is entered on your taxes, because it has your social security number. 
 

Here's how to enter your 1099-Q in TurboTax:

1. Open or continue your return.
2. Select Federal and then Deductions & Credits.
3. Scroll down to the Education section under All tax breaks.
4. Select, Show more and select Start or Revisit next to ESA and 529 qualified tuition programs (Form 1099-Q).
5. Follow the screens to enter your info.

[Hal_Al]

What does "apparently were not 'qualified' expenses" mean.

Tuition, fees, books, computers, other required course material and ROOM & BOARD are qualified expenses.  Board is a qualified expense, even if the student lives at home.

You can just not report the 1099-Q, at all, if your student-beneficiary has sufficient educational expenses, including room & board (even if he lives at home) to cover the distribution. When the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax will enter nothing about the 1099-Q on the actual tax forms. But, it will prepare a 1099-Q worksheet for your records. You would still have to do the math to see if there were enough expenses left over for you to claim the tuition credit. You cannot double dip! 

On form 1099-Q, instructions to the recipient reads: "Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. You must determine the taxability of any distribution." 

If you are the "recipient" of the 1099-Q (your name & SS# are on it), the taxable portion goes on your tax return, not the student's. 

[Timbo7]

It’s related to another question I posted here. My kid is going for an Aviation Science BS at an accredited school, and it requires that he obtain a commercial pilot license as part of the degree requirements.  The pilot license must be obtained from a third-party.  Our tax advisor earlier this year told us those lessons were covered, then another last week told us “probably not.”  Called a tax attorney and he said he had to look into it. So, no straight answers.  As such, we’re going to pay the taxes and perhaps amend later of we find that the expenses are covered.