taxmom50,
Hold tight while I see if I can track down a different thread from a couple years back where the taxpayer had a very similar struggle with non-CA parents. But in the meantime, I have a question for you:
Normally 529 distributions do not show up on tax returns unless they are used for non-college expense. See https://www.savingforcollege.com/article/what-you-can-pay-for-with-a-529-plan for the very generous list of expenses, including room and board, that qualify for 529 distribution expenses. Did the $5K get applied to such expenses?
