Did the distribution from the 529 cover all of the expenses for tuition? Was the amount of the 529 distribution more than the total of the tuition, books, and expenses for the education? Was the 529 one account for the benefit of both children? Were there two separate 529 accounts? You would need to be able to determine how much of the distribution was for each child.
A 1099-Q does not have to be reported on your tax return. Unless the amount of the distribution is in excess of the actual tuition, books, and educational expenses. For the college student, be sure to reduce the amount of tuition from any scholarships shown on the 1098-T. Look at Box 1 and Box 5. Is what is the difference? Is Box 5 more than Box 1? Room and board expenses can be used as expenses for the 529 distribution.
