I'm having a problem reporting education expenses on a 1098t and the related fund that were withdrawn from my son's 529 account to pay for tuition.
The 1098t has his name on it and he is not filing a return because we claim him and he has no income.
The 1099Q has my name listed at the recipient and him as the beneficiary.
We withdrew exactly what the bill was for fall semester 2020 and Spring 2021 to pay and make sure we did not withdraw too much.
the fund from the 529 plan arrived in dec 2020 to make sure we had them to pay for the spring semester, but payment was actually made in very early 2021 for tuition.
When I put 1098T and 1099Q amounts into TT we are getting tax on the extra amount it thinks we withdrew.
The 1098T shows what we actually paid (approx 7,600)in box 1 AFTER his scholarship of 5K that is listed in box 5. His actual tution before scholarship is the $5K more. I think it thinks we only had tuition of $2,600 not $7,600.
Additionally, what do I do about the fact that the money from 529 came in December but we paid tuition in January. We always seem to have this timing issue. please help! I don't believe we owe the extra 10% tax on excess withdrawals. Parent name is recipient, so I can't just leave the 1099Q off my return or I will get audited.
