Thanks for the quick response. I've understood what you've said except for the 1099-Q piece. It is addressed to me and though all of the proceeds are used for allowable expenses (Room/Board, Books, and Tuition) I still enter it or it'll tax me on 100% of the investment gain and penalize me 10% on the amount above and beyond the expenses. Because of the scholarships my son gets, I withdraw that amount as well, which is allowable without penalty, but exceeds the actual costs that I have. Does that make sense?
