I took a distribution from my ESA for $2000 in December 2020. In January 2021 I paid for my tuition with the $2000. I received my 2020-1099-Q showing the $2000 distribution & my 2020-1098-T shows $0. Will I get taxed the 10% penalty because the tuition expense was not incurred in the same calendar year as the distribution? If so, is there anyway I can reconcile this to show the IRS that I used the $2000 towards my tuition so I am not penalized?
Thank you!
