Hal_Al
Level 15

Deductions & credits

Don't make her the recipient next year.  The interview is the same in the case of a High school student.  You'll just have another return to prepare (maybe) and the "kiddie tax" may kick in. 

 

But the real solution is: just ignore the 1099-Q.  

You can just not report the 1099-Q, at all, if your student-beneficiary has sufficient educational expenses to cover the distribution. When the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax will enter nothing about the 1099-Q on the actual tax forms. But, it will prepare a 1099-Q worksheet for your records. 

On form 1099-Q, instructions to the recipient reads: "Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. You must determine the taxability of any distribution."