My child used her 529 to pay for qualified college expenses in November of 2022 for the Winter (Jan-April) semester of 2023. Due to medical reasons, she dropped out of school and got a full refund of her tuition. I was told part of the refund ($740.48) was for meals (we did not use the 529) for this. Well, learned today that the entire refund was for tuition. We sent 90% of the money back to the 529 within the 60-day recontribution period. $740.48 was not returned due to the wrong information given to us--thinking this was meal money not yet reimbursed out of the 529.
Now, I know we owe tax on the earnings part of this $740.48. I have calculated that we owe tax on just $215 (the earnings part of the $740.48). Where do I enter this $215.00 taxable income? We did not get a 1099-Q this (2023) year. The 1098T for 2023 just has the tuition refund for winter 2023 in box 4--rest of form is blank.
I put the $215.00 under miscellaneous income (Under Less Common Income). Is this correct? Will I be able to attach an explanation to this number via a statement somewhere? Did I enter this taxable ($215) value in the correct location?
Thank you!
