Both answers were very helpful, thank you. I have a follow-up question: If the total out-of-pocket school expense (tuition, etc., inclusive of any grants / scholarships) is still greater than the 529 account distribution shown on the 1099-Q, do I need to enter the 1099-Q into TurboTax?
As the parent who paid tuition, I put the 1098-T into my tax return. My dependent son is the recipient, so I put the 1099-Q into his tax return, but it created a "tax owed" situation. That does not seem correct. Is there a way to avoid that situation other than omitting the form?
