The 1099-Q must be reported on your daughter's tax return since the 1099-Q was sent to her and displays the last four of her SSN. She can still file a return and note that she can and will be claimed as a dependent on another return (yours). If she doesn't have any income, her standard deduction will "wipe out" the 529 interest income, i.e. no tax. If she doesn't file and report the 1099-Q, the IRS may or may not send her a notice asking for a tax payment - this will depend on the amount of interest income on the 1099-Q, i
