To GeorgeM777:
Thank you again for you reply to my follow-up. I agree that reporting my excess withdrawal (at the end of Dec 2021) in the 2022 tax year would better. However, since the 1099-Q for 2021 already includes that excess amount, I have to somehow show it is not an excess, non-qualified withdrawal.
To do this, from seeing how the forms calculate the excess amounts, and the taxes due on it, I need to input additional (qualified) expenses on the 1099-T so that it is as least as much as the total shown on the 1099-Q. I have done this in the line item for the Room & Board. I did get it to cancel out any excess, and it does not calculate any tax due.
So as long as I have backup documentation (and I do) that all of the withdrawals went towards qualified expenses, I think I should be alright. Let me know if you think otherwise.
Thank you so much for guiding me though this and providing your perspective.
