There is a box on the 1099-Q:
"If the fair market value (FMV) is shown below, see Pub. 970,
Tax Benefits for Education, for how to figure earnings" (page 53)
Was there anything in that?
Your original basis was $2000. You have to calculate how much of that $2000 was included in the current $4998.50 distribution. You do that by noting how much was still in the account on 12-31-20.
