Q. Should these expenses be considered qualified expenses for 2023 or 2024?
A. 2023.
As you correctly understand, the 529 withdrawal (distribution) must be made in the same calendar year as the calendar year the "qualified" expenses were paid for. Expenses paid, in 2023, for an academic term beginning in the first quarter of 2024, are "qualified educational expenses' (QEE) for a 2023 distribution.
It is not optional. If you paid 2024 expenses, in 2023, you must take the distribution in 2023 and not wait until 2024.
