Oh that is why IRS don’t even care about the Box1 or Box3 amount as it is taxed already. I thought I will be taxed on the excess withdrawal I made. I really didn’t know why the $8K we got from 529 offered by TD Ameritrade has no earning either but it doesn’t lol.
So in your opinion, if I can keep a good record of the $27K expenses to show that this offsets my 1099-Q $26K with the earning on it, then I should be fine because basically I don’t owe tax on this earning. But do I need to report 1098-T for that $7K tuition still? Thanks.
