If her Federal tax liability did not change, you do not file an amended return for your daughter. If the state tax went up, you will need to file an amended State return.
As far as the numbers, I follow the 2805 Scholarship, but what about the distribution? If you took 4,544 from the 529 plan, but used it for only 3480 room and board, what happened to the additional 1064 distribution amount?
The earnings on that portion would be taxable for the student if the 1099-Q was issued in her name.
The calculation is a bit complicated, which is why I suggested entering 3,869 scholarship income on the student's return, HOWEVER your program generated 555 for the distribution, so enter that on the student's return in addition to the 2,805 scholarship income
2,805 goes to her 1040 line 1 HOWEVER the 555 distribution goes to line 8.
If this changes her tax liability, file the amended return. If it doesn't, just keep everything together with your tax files.
Enter the 555 on the students return:
Return to the income section
Scroll down to the VERY LAST option "Less Common Income" and click Show more
On this new drop-down list scroll down to the VERY LAST option "Miscellaneous Income" and click REVISIT
Now scroll down to the VERY LAST option "Other reportable income" and click Start
Select YES on the "Any Other Taxable Income?" screen
Type "Taxable 529 distribution" and the amount 555.
Although the difference was 1,064, you are only taxed on the earnings, so part of the 1,064 was a return of your contribution and 555 is the earnings.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
