Thanks again, this is so interesting. I apologize for my questions if repetitive but want to make sure I am understanding correctly. I realize the error may not make a difference. But what if my son received a distribution of 4998.50 to cover all of these expenses, I don't feel like I would get the education credit since it is completely covered. Am I missing something? The 1099 is in his name, and he is not employed currently if that is helpful information.
Thanks!
The fact that box 2 of the 1099-Q is 0, means you do not need to report the distribution from the Coverdell. You have 0 earnings, so nothing is taxable. Essentially the distribution did not get used for education, so you can apply all the expenses to the credit
