Distributions from a 529 plan are tax-free if used for education expense the same year.
A distribution may be made in December of one year to pay expenses for classes starting in January, February and/or March of the following year, but can't go backwards.
TurboTax does not provide a way for expense from a prior year to be applied to a distribution.
The IRS does not require the distribution (1099-Q) be reported if it is tax-free.
According to the IRS:
“The designated beneficiary of a Coverdell ESA can take a distribution at any time. Whether the distributions are tax free depends, in part, on whether the distributions are equal to or less than the amount of Adjusted qualified education expenses (AQEE) (defined later) the beneficiary has in the same tax year.”
“Generally, distributions are tax free if they aren't more than the beneficiary's AQEE for the year. Don't report tax-free distributions (including qualifying rollovers) on your tax return.”
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