AmyC
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Education

The 529 is nontaxable when used for 529 qualified Room and Board (including students living at home) and Qualified Education Expenses - Internal Revenue Service.  Be sure to track where the money went to qualified expenses.

If possible, leaving $4k to be used for tuition and the education credit goes a long way, if you qualify.

You will receive a 1099-Q for the distribution and it is not entered if all of it went to qualified expenses.   IRS Publication 970, Tax Benefits for Education states:

Page 45: Don't report tax-free distributions (including qualifying rollovers) on your tax return.

 

Reference: What You Need to Know about AOTC and LLC

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