Yes, however, the 1099-Q from the university only reports qualified tuition and fees, not qualified off-campus room and board. So the IRS can't tell that the "excess" distributions (529 distributions - qualified tuition and fees - American Opportunity Fund tuition basis ($4000)) are actually qualified. This problem occurred in 2014, and the IRS notified me that the "excess" 529 distributions were taxable and that I owed money; I had to provide separate documentation in a spreadsheet to prove the "excess" 529 distributions were actually qualified. I'd like to avoid that - how do I notify them up front that off-campus room and board fees not included in the university's 1099-Q are actually qualified?
