I paid my daughter's off campus apartment rental in 2021 by withdrawing the exact amount of the rent each month from her 529 plan. On the 1099-Q, I was listed as the recipient, though my daughter was the ultimate recipient. Based on this, Turbo Tax shows I should pay taxes on the earnings, since I was technically the recipient. Is this correct? I didn't think it mattered who received the money as long as it was used for qualified educational expenses. Thus, I thought there would be no taxes incurred. Thank you.
