1099Q issued to Divorced, Non-Custodial Parent

[Yardley CPA]

Client received 1099Q for distribution from the 529 plan she opened for her daughter.  Since opening the 529, client has divorced and her daughter is being claimed on her ex-husbands return.  How should I report the $5,000 1099Q distribution?  Client did pay tuition with this amount but since her daughter is not her dependent should it be reported on Line 21?

 

Thanks very much!

[Terry D EA]

As I understand it, the amount not spent on education is the amount to report on line 21. If any of those funds were used for tuition and fees then that amount is deducted from the total with the remaining amount on line 21.