Education

Great info, but it doesn't resolve the original question, at least as pertains to my situation.  Here is what I mean:

1. Total college expenses for the semester (simplified):

$6,500 Tuition and Fees

$7,000 Room and board

=$13,500 Total expenses

 

The 1098T only lists $6500, whereas the 1099Q lists $13,500, implying that I owe taxes on the $7,000 (all contributions made by me and distributions made to me).  That seems like a problem, no?  I didn't get a tax break on the contribution (no tax break for 529 contributions in NC), and then I have to pay taxes on the distribution, even though it's going to a qualified higher education expense?