How is this recontribution done? What do you do about the 1099-Q? For example, in IRS Pub 970 there is an example where the student had $5200 in QHEE after a scholarship, but she took $5300 from her 529. She calculated the earnings on that extra $100 (it was $18) and claimed it as income because it was an nonqualified distribution. But if she sent that $100 back to the custodian, and they counted it as a new contribution and kept the $5300 on the 1099-Q, would she just subtract the $100 "contribution" and not claim any nonqualified distribution? Or would the custodian be required to issue a corrected 1099-Q?
