We took a 529 distribution based on the "scholarship exception." (The exception that say you can withdraw up to the amount of a tax-free scholarship and use the money for any purpose penalty-free.) The distribution showed up on the parent's 1099-Q, despite the fact that the 529 plan mailed the check to the student and in the student's name!
I'm going to call the plan and whine, but I don't expect them to re-issue the 1099-Q.
Is there a way to offset that distribution on the parent's return by the amount of the scholarship?
