1099-Q for Non-Dependent Daughter

[Yardley CPA]

Client received 1099-Q for funds distributed from her 529 to pay tuition expenses for her non-dependent daughter (daughter is taken on ex-husbands return).  I recognize the client cannot deduct educational expenses for her non-dependent, but how do I account for this distribution from the 529?  She provided me with a copy of the 1099-Q and the 1098-T.  

Is the distribution even reflected on Line 21 or on some other portion of the return?

[Richcpaman]

I just put it to Line 21.  If the funds were used for QEEE and Non-taxed, then I show the earnings, and then another line that I subtract out the amount showing a net of -1.  That way the worksheets print and the line item gets efiled to the IRS.

Avoids any CP-2000's as well.

Rich

[Yardley CPA]

Thank you, Rich.