Since 529 distributions reported on a 1099-Q can be used for the qualified education expenses of tuition, lab fees, books *and* room and board paid that is in direct support of the education, I have found that if you don't work through the education section of the program the way it is designed and intended to be used, you risk the possibility of not being asked for those room and board expenses. When that gets skipped, there is a chance that the program will flag some of that 1099-Q distribution as taxable income to the student.
