Q. I don't plan to put numbers from my 1099-Q because the entire amount was used to pay for qualified 529 educational expenses (Room and Board, tuition fees, etc).
A. Yes.
Q. $19,000 was excess distribution not used for educational expenses in 2023.
A. I'm not sure how you got that number, but it's academic. With only $709 of earnings, in box 2 of the 1099-Q, the taxable amount is negligible. $709 at the most, $300 with a $19,000 non qualified distribution. Without even declaring some of his scholarship as taxable, there's only $709 (or less) of income. If that plus his $2500 wages is his only income, he doesn't even need to file a tax return, unless he needs a refund of withholding. Because of the scholarship, the penalty exception applies.
