I received a 1098-T from the college and 1099-Q from the 529 plan for education expenses for Fall 2019, Winter & Spring 2020 payments (all made in 2019). My daughter withdrew from the college for Spring semester (in Feb 2020) and the college issued a refund check at the end of Feb to cover all expenses paid. I submitted payment back to the 529 plan to cover the disbursement for the semester. The 2 tax forms are for payments made in 2019 and do not include the refund. How do I account for this? When doing taxes, it asks if she received a refund. Do I answer NO? She did get a refund after the forms were issued and the funds were placed back in the 529 Plan. This will probably be an issue for most college students in 2020 with refunds due to COVID. I am also confused about filing a tax return for her. I am paying for all expenses that are not covered by 529, we have no loans and I am putting the info in my tax return but the 1099-Q is issued in her name.
