JK84
Level 1

Parent withdrew from 529 and paid child's tuition. 1098-Q has earnings. Why am I being taxed?

I'm a parent who pays my daughter's tuition up front, then reimburse myself from her 529. I received a 1098-Q from the 529 savings account and my daughter received a 1098-T from her school. They offset each other. 

 

The 529 account lists every withdrawal as qualified, so why does the 1098-Q have taxable earnings in box 2?