My daughter is in her first year of college. I purchased a computer for her and paid an orientation fee. I was reimbursed for those items from her 529 plan and received a 1099-Q in my name for $916.
Her tuition, books, room, and board were paid directly to the college from the 529 plan. She received a 1099-Q for the distribution. Her fall 2021 semester was paid in August 2021 and her spring 2022 semester was paid in December 2021, so her 1099-Q has a distribution of $17,830 which is for both semesters. The 1098-T she received for education payments in 2021 was only for $6,670, which is part of the expenses for the fall 2021 semester.
Since I claimed her as a dependent, I entered the 1098-T information on my taxes. However, since she has the $17,830 529 plan distribution on her taxes with no education expenses, she is now owing $1400 plus in taxes.
Is there a way to account for the distribution since it actually applies to two different tax years? The distribution on her 1099-Q went directly to the school to cover allowed expenses - how do I explain that in Turbo Tax?
Thanks!
