My daughter is the recipient on a 1099-Q form as she received distributions from a 529 plan opened by a relative. Her 1099-Q form has $2685.92 in Box 1 Gross Distribution and $837.84 in Box 2 Earnings. I really don't understand the gross distribution/earnings and how this works. The amount from the 529 plan was used to pay a part of her college tuition fees and we paid the remainder (90%) of the tuition fees. We claimed her as a dependent and reported her 1098-T on our tax returns. She also received a 1099-INT form for a $130 interest from savings. She had no other income in 2019. Does she need to file a tax return?
