Hi. I'm an educator and have qualified educator expenses last year. I am also the parent of full-time college student. We withdrew 529funds to pay for my kid's qualified expenses last year. My name is listed as the "Recipient's Name" on the 1099-Q we received, and box 6 of the 1099-Q form is checked to indicate that the recipient is not the designated beneficiary. When i fill out the 1040 "Educator Expense Worksheet" (Schedule 1/Line 10), I report my " qualified educator expenses" for being a teacher, BUT, those expenses are negated by the "non-taxable qualified tuition program distribution" I have to report for the 529 distribution. Even though I can prove that 100% of that 529 money went directly to my kid's qualified college expenses, I'm basically losing a tax credit because I'm a pass-through (in name-only) for 529 money. Is this correct?? See also https://www.irs.gov/taxtopics/tc458 for reference. Help to understand this is greatly appreciated!
