My son received a scholarship which was paid to the university in 2021. He graduated in 2021 and had excess left over in his 529 plan. We requested a distribution from the 529 plan at the end of 2021 that matched the value of the scholarship. He received the distribution but it was dated Jan 3, 2022, even though it was requested in 2021. Therefore he did not receive a 1099Q for this money for 2021. I am sure he will get the 1099Q next year. The scholarship is listed on the 2021 1098T. Can he include the money this year on his taxes? We are concerned that if he waits to include it on his 2022 taxes, it will be non qualified and he will incur a penalty. Also his tax bracket will be higher for 2022.
