The tuition payments were included in the 2019 1098-T, but the 529 distribution was reported on my 2020 1099-Q. Both the payments and the distribution were intended for the spring term of 2020.
The kids took most of 2020 off due to covid, so there wasn't much tuition due that year and what was due was covered by fin aid. I did not receive a 1098-T for 2020 because box 5 (fin aid) was greater than box 1 (payments).
SO.....its looking like the 529 distribution is now completely taxable as income for 2020. Am I out of luck here? is there anything I can do?
Thanks in advance for any advice
