regardless of where the check was mailed, the 1099Q goes with her tax return since her SSN was used and was reported to the IRS (and if any part of the earning is taxable, her tax rate is probably lower than yours!)
Assuming you are not claiming any Lifetime Learning Credit on YOUR tax return..... as long as BOX 1 on the 1098T less Box 5 on the 1098T plus all other qualified expenses (think Room and Board, Books, computer supplies) exceeds Box 1 on the Form 1099Q, there is no need to report the 1099Q on HER return
if you look closely at the instructions that came with the 1099Q, it states: '
Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. You must determine the taxability of any distribution.
and you have determined the taxability is zero, if the expenses exceed Box1 on form 1099Q! Just put the supporting documentation in a drawer in case the IRS ever comes knocking.
