In 2016 I used a 529 account and cash to pay for my freshman's fall/spring college expenses - tuition/room/board/computer.
In February she was retroactively awarded a 4-yr ROTC scholarship (yea!). I just received reimbursement for fall tuition from ROTC - spring semester reimbursement is pending.
Do I claim the ROTC scholarship in 2016 or in 2017. One or both semesters?
If in 2016, will I (or my student) have to pay taxes on the proportional share of 529 interest earned on the 529 payments that were in excess of qualified expenses? Any penalty on excess distributions? Thanks.
