My daughters attend U of A in Tucson, AZ. They each received a $10,000 scholarship towards out of state tuition. In addition to the $10,000 scholarship, the amount withdrawn from each 529 was $23,659. All of that distribution was used for education expenses. Why did my federal return decrease after entering my 1099-Q. The earnings reported equal $5828. I am not sure why I would be taxed
