My daughter is a freshman in college so I am new to the world of 529 distributions.
In July 2021 I took a $20,019 distribution to pay for her first semester in the fall of 2021. In late December 2021 I took second distribution of $21,849 to pay for the spring 2022 semester, due on January 6, 2022. The 1099-Q I received from the 529 plan reflected the total of both distributions of $41,868.30, however the 1098-T I received from the school only reflects the first semester tuition of $23,019. From the standpoint of tax years there is now a mismatch of distributions vs espenses. How should this timing discrepancy be handled for tax purposes? If I cannot offset the spring semester expenses, according to the Turbo Tax program, it seems I have to pay taxes on the $21,849 since I took the distribution in 2021 for 2022 payments. Please advise.
