So my freshman daughter’s 1099-Q for 2015 doesn’t match her 1098-T. Does that matter? I had read that if you paid yourself the money in 2015 and then didn’t use it to pay the college until 2016, you could have an excess distribution, so I had the check sent directly from the 529 to the college to pay her spring 2016 bill, which was due Jan. 7. But now the 1099Q shows the distribution in 2015 and I guess the college is counting it as 2016 (not sure whether they received the check in 2015 or 2016). Could this be an excess distribution problem for me in 2015?
^You could claim that the money came out in 2015
Just kicking myself. I figured that whenever the plan mailed the check to the college, that would be when it was paid (and also when it was withdrawn, so both would necessarily be the same year). I’m going to call the school and the 529 tomorrow and try to figure this out.
Problem solved. I found the receipt from the college showing that the bill was indeed paid in 2015.
Just keep good records. It is not unusual for the 1098-T and 1098-Q to be out of sync. Report it on your taxes the way it happened. Sometimes the IRS will send a letter asking you do document your expenses for a year in which you had withdrawals from the 529. A letter in response, not even containing copies of receipts, usually suffices.
Thank you! This is my first go-round with these firms, so I appreciate the help.
I mean forms.