Hello,
My daughter has a @529 Plan that we are using for her college tuition. The 1099-Q Form from a qualified education program includes a payment made to the college in December 2020 for this current semester. The 1098-T Form, however, does not include this payment as it was cashed by the college in January 2021. Therefore, there is a $15,000 discrepancy between the forms and the distribution exceeds the qualified education expenses. The software program is incorrectly showing that we are holding this $15,000, that we should be taxed on it, and that we should be paying a 10% additional tax penalty. Is there a part within the tax forms/software program that we should fill out to clarify this difference? Your help would be greatly appreciated.
Thank you,
Jason
