Q. Do I have to enter the 1099-Q and beat my head against why I am being taxed?
A. No. And not entering (or deleting it) the 1099-Q is "how do you go about resolving this".
One caveat, if your student lives off campus, room and board expenses for a 529 distribution are limited to the lower of your actual expenses or the school's room and board allowance for on campus students.
