@BuckMurdock
Do not enter either the 1099-Q or 1098-T on your return, because he is no longer your dependent. They have already been reported on his return. Furthermore, both forms are only informational documents. There is no requirement that they be reported*.
That answer assumes that there were sufficient expenses, including room and board, to cover both the 1099-Q and the LLC (Lifetime credit), on his return. That is, no portion of the 1099-Q (box 2 amount) was taxable on his return.
*On form 1099-Q, instructions to the recipient reads: "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." Even when entered, when the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax will enter nothing about the 1099-Q on the actual tax forms. So, even if the 1099-Q was suppose to be enter on your return, instead of your son's; it doesn't matter. Nothing was sent to the IRS.
Information only (the above answer still stands): For 529 plans, there is an “owner” (usually the parent), and a “beneficiary” (usually the student dependent). The "recipient" of the distribution can be either the owner or the beneficiary depending on who the money was sent to. When the money goes directly from the Qualified Tuition Plan (QTP) to the school, the student is the "recipient". The distribution will be reported on IRS form 1099-Q. The 1099-Q gets reported on the recipient's return (if it even needs to be reported).The recipient's name & SS# will be on the 1099-Q.
