I set up three Fidelity 529 plans for my three children (at the time each was born). When my oldest graduated college, there was money left in the account. My other two children are still in college and I used the remaining money for their qualified college expenses in addition to the separate 529 accounts I set up for them. The disbursements were always sent directly to the colleges. My oldest child now has a job and files a tax return this year, but is still a dependent on my taxes for 2022 (supported by me for most of the year). The problem I have is I just received three 1099-q forms and one has the first child's tin on it (the other two have it in their tins). This child no longer has any college expenses (no 1098-t) and the 1099-q for 2022 would now be on the oldest child's 1040. I thought Fidelity could send a corrected 1099-q, but they said because they did not make the mistake, it wasn't their problem to fix. I have more qualified expenses than all three distributions combined, but the 1099-q for the graduated child looks like it was an improper distribution subject to a 10% fee and income tax because it is on their 1040. I have clear invoices that show the disbursements from all three 529 accounts went to the two remaining colleges and covered only qualified expenses. I can't be the only person that has run into left over account money used for another child and wound up with this problem, but I can't find help on how to correct this. Can anyone help?
