Thank you so much! I'll take another look at TT tomorrow night. I didn't realize that (1) it was an option to not report your 1099-Qs at all. (Does that mean neither of us would report them at all?? And is it an issue if we already reported and filed the $15K 1099-Q on our daughters...would we just Ignore it on ours as well as all expenses? If so, making a note for next year!) On the 1098-T (that's the one that is tripping me), I can't remember the actual wording but I thought I said exception and that the university hadn't provided it, which wasn't true. I'm just not sure why there isn't a way to "match" the 1098-T expenses on the same return as the 1099-Q withdrawal for funds that go directly to the school but are in the child's name, but that are supposed to go on the parents return.
And yes, we are not eligible due to income, blessed to have that problem. Our older daughter was also blessed to have scholarships exceed tuition and living expenses, so we are used to her paying taxes on scholarships AND 529 withdrawals. So I know I don't owe taxes with this kiddo, the reporting just has me perplexed for a "normal" student.
