This was the first year we took money out of her 529 for our daughters college. Every cent we took out of the 529 went to pay for her tuition. When I went to file and entered the information that was sent to me on the 1099-Q it increased my taxes owed over $2000. I thought any withdrawals that were used for college tuition was tax free. Please advise.
Side note information if it makes a difference. My daughter received scholarship through the college that reduced the amount we had to pay for tuition but all the money taken out of the 529 was to pay for that difference.
The 1099-Q was sent to me in my name sine the money was sent to me then I payed the college tuition from my account.
My daughter is my dependent.
