The entire distribution is nontaxable as I have receipts from the school. Since I do not report amount of distribution from 1099-Q or Adjusted Qualified Education Expenses, how does IRS view distribution? Since I am owner and not beneficiary of this account, I am afraid after filing my return I will get a letter from IRS explaining this distribution was taxable and they will list tax and penalty I owe. Is there a way to be proactive from preventing this scenario?
