You must contact the IRS over the phone and make arrangements to substantiate that the distribution from your Qualified Tuition Program was used entirely for Qualified Education Expenses.
Form 1098-T is simply what the school reported but if you look at the form, it is possible that only Box 2 has a dollar amount that is described as "Amount Billed", Box 1 states "Payments Received". If possible it would be best to gather:
- Tuition Statements/receipts of payment directly from the College or University
- All receipts for other Qualified Education Expenses (please view the list below)
Qualified Education Expenses; for purposes of 529 and Coverdell ESA plans
- Tuition and fees;
- Books, supplies and
equipment; Computers and Software
- Room and board
expenses for students enrolled at least half-time only to the extent they are
not more than the greater of
- The allowance for
room and board included in the cost of attendance for federal financial aid
purposes, or
- The actual amount
charged if the student resides in housing owned or operated by the eligible
education institution; and
- Expenses for special
needs services required by a special needs beneficiary and incurred in
connection with enrollment or attendance.
