actually when i run my actual numbers it comes out more like only 50 percent of the 2nd 1099Q is uncovered. So very safe with the numbers even without finding additional expenses. I hope this (and my previous) are my last questions on this thread.
I'm trying to understand that when offsetting the 529 distribution with expenses, it is not a 1:1?
if you cover 20 percent of the distribution with expenses then only 80 percent of earnings "taxable"?
(or same for 50 percent)?
It is not that if $1000 of earnings is over what is covered, the full $1000 is not taxable? I think this is where I did not understand the accounting as a layperson/self-preparer.
