Hi skibriana,
529 accounts and distributions are not being handled correctly, and I see an IRS crackdown on these accounts soon, but that does not concern you at this point.
If the distributions were less than the student's tuition, you don't HAVE to do anything.
ON THE OTHER HAND, you might want to apply for an education credit, in which case you do need to do something.
To do something-
enter the student's (or your) 1099-Q, then the 1098-t (tuition and fees paid to the school).
Next add additional education expenses, like books and supplies.
Finally go through the interview questions.
TurboTax does the math/
You might get a credit and/or the student might have to claim income.
Please read IRS Pub 970 for more clarification
IRS Pub 970
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
