nope - they will not chase you.... only Box 2 is taxable income. Box 1 is after-tax money in any event.
Remember how the 529 works.... you put AFTER TAX money into the 529 and then when you take it out, the EARNINGS are tax free; the principle is already after-tax so it's not subject to tax under any circumstances.
There is nothing on your son's 1099Q that is taxable since Box 2 is empty (I do find that odd). The $8,000 in box 1 and box 3 is the return of the principle (after tax dollars) that were deposited into the 529 years ago,
the excess distribution was simply the return of you after tax money in this case hence not taxable.
