I paid my son's Fall 2019 tuition in July of 2019 and his Spring 2020 tuition in late December, using his 529 account. He received Federal and State Grants for both semesters and a grant from the college for the Fall semester only. The school grant was GPA dependent and he slipped a little bit below the requirement, so he lost it for the Spring semester. My 1099Q shows that the 529 account paid $8816.00 in 2019, which is accurate. However, my 1098 T, shows information for the Spring 2019 and Fall 2019 semesters. We paid the Spring 2019 semester in December of 2018. It says they received payments for tuition totaling $8125 and scholarships and grants totaled $13,198. According to my bills for the Fall 2019 and Spring 2020 semesters, we paid $2365 in the Fall and $6451 in December for the Spring 2020 semester. Our grants totaled $6490 in the Fall and $1934 in the Spring. Because of this, it looks like we took out extra money from our 529, which will be taxable, even though we didn't even see the money, it went directly to the college.
