I have the exact same problem- Federal tax withheld from an ESA and Form 1042-S issued instead of 1099-Q even though I'm a US citizen.
I used all of the distribution on qualified expenses. In your answer, why did you advise to file a 1099-Q form only if the distribution was used for unqualified expenses? I'm worried if I don't file a 1099-Q that the IRS won't know to what the "Other taxes withheld" pertain. Note that I don't qualify for an education credit as my income is too high.
Thanks!
