If the 1099-Q was used for education expenses, it would not be taxable income.
You need to research who the owner and beneficiary is.
If you are the owner, the most straight forward way of reporting is, you enter the 1099-Q first, next all education expenses. The expenses will cancel the 1099-Q.
"Distributions or benefits reported on Form 1099-Q, Payments from Qualified Education Programs, are received from a Coverdell education savings account (ESA) or a 529 plan (also called a qualified tuition program (QTP)).
The form is sent from the bank or administrator that manages the 529 or ESA. The owner of a 529 account (whoever set it up and makes contributions to it) gets the form and has control over the funds.
If the beneficiary is the owner’s dependent,
the owner
is responsible for potential tax consequences. But if the beneficiary files their own tax return,
they’re
responsible for potential tax consequences.
The distributions aren’t subject to federal tax if the funds are used to pay for qualified education expenses, you often don’t have to pay state tax either. However, distributions that exceed those expenses can be taxable."
Next, you say you paid Room and Board. Did you use the distributions for that? Many plans allow the distributions to pay room and board, freeing up tuition to be used for the education credits. You would need to check with the plan's administrator about this.
Click the link below for IRS Pub 970. It explains different ways you can maximize your education credit.
CLICK
HERE for TurboTax information about available Education Tax Credits
CLICK
HERE for IRS information about Education Credits
CLICK
HERE for a guide to the 1098-T
CLICK
HERE for more information on the 1099-Q
CLICK
HERE for a guide to the 1099-Q
CLICK
HERE for IRS Pub 970 Tax Benefits for Education
