If you have ascertained that qualified education expenses plus room and board of the beneficiary cover the amount of the distribution reported on form 1099-Q, you can just not report the 1099-Q on your tax return at all. You just keep the form in your tax records together with calculations to show that you have enough education expenses and room and board to cover the distribution.
On form 1099-Q, instructions to the recipient read: "Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. You must determine the taxability of any distribution."
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
