Tuition fees for Fall 21 totaled $20110.00. R&B totaled $5887.00. Received a 1098-T for $12750.00. Liquidated a Coverdell in 8/21 through charles schwab. Initial contributions were made years ago. The only amount listed is the Gross Dist ($6635). There are no amounts listed in the earnings or basis boxes. TT says there is no taxes to be paid on this since 100% went to qualified expenses. This is where I think I have a problem though. Spring '22 bill was due by 1/03/22 and I requested a ditribution ($6322) from our American Funds 529 plan that was paid on 12/29/21. TT is asking for the basis and earnings amount for this 1099-Q, which it has listed eventhough it is from a 529 rather than a coverdell. There are asterisks denoting that the info is useful only if the account is a coverdell though. Bottom line, TT is stating that $2400 of the 529 money is to be taxed. Is this because I received the distribution in '21 eventhough the money was used for the '22 school year? Can anything be done to denote that none of the 529 money went to pay for '21 expenses?
