@SusanY1, I read your response to my question and I have been stressing over it a bit. My return and my daughter's return are both completely ready for submission. Even though your suggestion to just leave my daughter's 1099Q out of her return is consistent with other responses I've read, my OCD is making it hard for me to pull the trigger and submit hers and my return without it. I fear an audit and I don't want to set myself or her up for one by not including the 1099Q. At the same time, I don't think my daughter should have a tax payment due on the withdrawals made for qualified education expenses.
I spoke to a CPA through the TurboTax help line and at first he insisted that the 1099Q should be reported. So the ONLY way to erase my daughter having a tax payment was to remove her as a dependent and file both the 1098T and 1099Q in her return. It eliminated a tax payment for her, but it also reduced the credits my wife and I received as her parents. I had him read your answer to my original posted question and he immediately changed his stance on my daughter including the 1099Q. So it left me with a little more confusion with him changing his instructions so quickly.
I just want to make certain that NOT filing a 1099Q that was issued for my daughter will not increase the likelihood of an audit for her. As I had stated before, the ONLY withdrawals made from my daughter's 529 were used to pay for tuition, room & board and for a laptop I purchased for her. And I have documentation to support every withdrawal. There was nothing else withdrawn from her 529 account.
Sorry to bother you again, but I just need confirmation that I'm not making a mistake. Thanks!
