I have a similar problem. My wife is the owner of the 529 with my daughter as the beneficiary. My wife received the distribution and paid my daughters educational expenses. In the past this wasn't a problem because my daughter was a dependent. But now she's a non-dependent because she permanently moved to the state where she attends school since she plans on staying there after graduation. Because she's no longer a dependent TT won't let me enter the education expense information.
The 1099-Q was only issued to my wife (the owner) and not to my daughter (the beneficiary) since the money was distributed to my wife to pay the educations expenses (e.g. tuition, rent).
Are we stuck paying taxes on the 529 distribution for 2021 even though the money was used to pay educational expenses of the 529 beneficiary?
