1098-T and 1099-Q question

Hi,

I was hoping that I would get some advice on this topic. I was helped last couple of times on my previous questions, that is much appreciated.

The 1099-Q, which shows 529 distribution details from Vanguard for my daughter who is in her first year of college, include the distributions taken in Dec 2014 for the Spring semester starting Jan 2015. The payments were needed by the college in Dec 2014 itself o/w they would have been marked as late. All the withdrawals were for qualified expenses.
Though the 1098-T, from the college, includes only the qualified expenses for the calendar year of 2014.
How is this mismatch expected to be handled correctly?
Is the 1098-T just meant for guidance?
And I can just go by the 1099-Q numbers since they were all valid qualified expenses, albeit for 2015 calendar year tuition.

This is my first daughter and her first year in college.
Any help is appreciated.

Thanks!



The mismatch is normal. The 1098T provides the option to the institution to report either amounts paid or the amounts billed. Therefore, if your 1098 reports amounts billed (Box 2), it would be closer to what was distributed. But yes, you can consider the 1098 T to be an indication which you must square up to what was paid, refunded etc. Sounds like you can simply note on line 21 of Form 1040 that there is no taxable amount due for the 1099 Q distribution due to the distribution being applied to qualified expenses.



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