You are allowed to reimburse yourself with 529 plan money and still get the 529 plan tax benefits. You do report the 1099-Q on your return.
For 529 plans, there is an “owner” (usually the parent), and a “beneficiary”
(usually the student dependent). The "recipient" of the distribution can be either the owner or
the beneficiary depending on who the money was sent to. When the money goes
directly from the Qualified
Tuition Plan (QTP) to the school, the student is the
"recipient". The distribution will be reported on IRS form
1099-Q. The 1099-Q gets reported on the recipient's return.
The recipient's name & SS# will be on the 1099-Q. You have the choice of having the plan send to money to you, the student-beneficiary or the school.
For more detail on hoe to report it, see https://ttlc.intuit.com/questions/2662573-where-do-i-enter-1099-q?jump_to=answer_4402991
