We use the 529 to pay all of our kids' college expenses. One school wants tuition paid way ahead of time (usually sent end of December and credited beginning of January) and then the 1099Q shows a mismatch with the 1098T. Thus it *looks* like he took a huge distribution and did not use it all for education. Then TT says he has to file taxes, which he doesn't. How do I fix this? All our distributions go straight to the school but the 1099Q says it went to him since he is the beneficiary. None of this money was ever in his hands. His only pay is his small part time job.
