First post - not a qualified school
1, Yes. IRS Pub 970 and Can You Use a 529 Plan To Pay for Study Abroad? agree that ineligible expenses must be included in income. Whoever received the income from the 529, includes it on their tax return.
2. No. LLC is only for qualified education expenses which means to an eligible institution. See What You Need to Know about AOTC and LLC
3. & 4. All taxable income
Second post - received a 1098-T, sounds like an Eligible Educational Institution - Internal Revenue Service. Verify if it is or is not.
If it is:
1. Only portion beyond 529 qualified Room and Board and Qualified Education Expenses - Internal Revenue Service would be taxable.
2. Yes, LLC available.
3. Some portion would be taxable.
4. Distribution in 2024 to pay for tuition due the first 3 months of 2025 is not taxable.
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