I withdrew $3000 from my son's 529 in January as a non-qualified distribution, expecting that his summer tuition would be covered by scholarship. I now find his scholarships do not cover his summer tuition. (He is on co-op rotation and is required to take summer classes between work rotations). He will also have living expenses that are determined by the University's COA. Total qualified expenses this summer are $6375. Can I treat the non-qualified distribution as a qualified expense? I plan on only withdrawing $3375. What documentation do I need?
When I have made a non-qualified distribution before, the 1099Q shows earnings in box 2. When it is designated as a qualified expense, box 2 is left blank.