The IRS states twice in Pub 970that you should not report the form 1099-Q when it is used in full. It is not a red flag to follow their directions and no cause for concern. The IRS looks at college information for that year versus say a rental house with depreciation that should match. Teenagers can't be tracked as well 🙂 Really, no need to worry. If you have found you qualify for additional credit in prior years, you can amend the return for a tax liability change but do not amend a return without a change in tax liability (another new rule since COVID).
IRS Publication 970, Tax Benefits for Education states:
If the entire 1099-Q went to qualified expenses, room and board, tuition, etc then you do not need to enter the form. Tuition paid for the first 3 months of the next year also qualify, see page 12, What Expenses Qualify, and page 52 for qualified distributions.
Then on page 45- Don't report tax-free distributions (including qualifying rollovers) on your tax return.
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