<p>I withdrew money from my son's 529 in late Dec to pay his spring tuition. I paid that bill in early Jan. Now I'm doing my taxes and the 1099-Q shows this huge distribution (of both 2012 tuition and spring 2012) but 1098-T from the university only shows tuition paid in 2012, which is far less since it doesn't include the early Jan payment. </p>
<p>So it looks like I cashed out more from the 529 than i should've, and my nice refund went up in smoke.</p>
<p>Can anyone help me here, please? Ugh!</p>
<p>Room and board and books are also qualified expenses for 529 withdrawals along with tuition and fees. The 1098T will only show tuition and fees. Look at the source records for 2012 to find the qualified amounts actually paid in 2012. But yes, expenses paid in the tax year need to equal or exceed the 529 withdrawal amount in the same tax year. Only the earnings portion of the excess withdrawal is taxable but there is a also a 10% penalty for excess withdrawals. Whose SSN is on the 1099Q? That’s who reports the excess on their taxes.</p>
<p>I have always been careful to withdraw the money in the same year it is due. I suggest you post this in the financial aid section - there are several knowledgeable posters there who may be able to help.</p>