Q. Is the expectation that I would enter the remaining earnings on his return in this scenario?
A. Yes, because he is the "recipient" of the 1099-Q for that distribution ("Payments made to the university for his tuition were in his name, so he received a 529").
Since he's already filed, there is a work around. At tax filing time, it is not necessary to match 529 distributions to the actual expenses they paid. You may allocate as needed, as long as the distributions and expense payments occurred in the same year.
So, you can claim that his 1099-Q covered the room and board and enough other expenses to make it not reportable. Enter the remaining expenses and scholarship offset on your return with only your 1099-Q.
If you need some help with doing that, provide some actual numbers.
Provide the following info for more specific help:
- Box 1 of the 1098-T
- box 5 of the 1098-T
- Any other scholarships not shown in box 5
- Does box 5 include any of the 529/ESA plan payments (it should not)
- Is any of the Scholarship restricted; i.e. it must be used for tuition
- Box 1 of your 1099-Q
- Box 2 of your 1099-Q
- Box 1 of his 1099-Q
- Box 2 of his 1099-Q
- Room & board paid. If student lives off campus, what is school's R&B charge.
- Other qualified expenses not included in box 1 of the 1098-T, e.g. books & computers
- How much taxable income does the student have, from what sources
- Are you trying to claim the tuition credit (are you eligible)?
