Guidance from the state of Virginia state
"If your beneficiary's qualified higher education expenses for 2019 equal
or exceed your Virginia529 account distribution(s) taken during 2019, you
do not need to report the earnings on your federal tax return"
That statement is not "quite" correct, because it's not all inclusive. To be all inclusive, it should read as follows"
"If your beneficiary's qualified higher education expenses for 2019 minus all scholarships and grants received in 2019, equal or exceed the total of your Virginia529 account distribution(s) taken during
2019, you do not need to report the 1099-Q on your federal tax return"
The original statement is assuming that 529 distributions are the absolute only education assistance received by or on behalf of the students qualified education expenses in the tax year. That assumption will be wrong for many.
