Yes, be careful here, you may have exceeded qualified educational expenses. Make sure the 1099Q adds up to tuition plus qualified expenses, plus room and board (a qualified expense for 529). If she received scholarship or grants and uses some of that money on room and board in excess of the 529 it could become taxable. Especially, when Box 5 of the 1098T is more than Box 1 of the 1098T form. If not the case, the allocation may be wrong remember to distribute your 529 accordingly:
- Tuition
- Required material (purchased from school if grad student; may already be on 1098T)
- Room and board
- Other 529 qualified expenses
@Mump51
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