Q. Is there not a schedule that shows this?
A. No. Look at the student information worksheet, that might help. There's also a 1099-Q worksheet.
It's probably best done manually. The formula is: Total expense minus amount of tuition used for the education credit (usually $4000) minus the amount allocated to any scholarship (to keep the scholarship tax free) equals the amount you can withdraw from the 529 plan.
Room and board is only a qualified expense for the 529 plan, not the tuition credit or tax free scholarship. Having the student treat some of his scholarship as taxable income can free up expenses for the credit or 529. Students won't actually pay any tax on scholarship income until their total income reaches $14,600.
