Funds distributed from a 529 Plan, will be reported by the bank on a Form 1099-Q. The 1099-Q is sent to the owner/recipient of the 529 Plan funds. The Form 1099-Q is to be reported as income if they were not used to pay qualified college tuition/expenses. If the amount reported on the 1099-Q were used to cover qualified college tuition/expenses you do not need to report the income. If the amount exceeds the amount of college tuition/ expenses then the excess needs to be reported as other income on your 1040.
Since your income is too high for an education credit and as long as the educational expenses are at least the amount shown on the 1099-Q you do not have to list it on your return. You should keep the 1099-Q along with the documentation of your qualified educational expenses with your tax records.
