And may I please add a related question. Suppose a student receives other scholarship monies during the freshman year, say, that are not needed to meet college expenses this year but will be needed in future years. Say that those monies are disbursed directly to the student, and the student puts that money away in a 529 for future use. Also suppose that at the time the monies are given, it is not clear whether they will ultimately be used for a qualified expense like tuition or a non-qualified expense like room and board. How does the IRS view those monies? In the end we could look back and say that they were -- or were not -- taxable, depending on how they wind up being spent, but we don't know any of that yet. These monies don't appear on any 1098-T or W-2. Should you/how do you report this money in such a case? Again thanks.
