In another recent post dcandmc stated the following:
Example: the college sends and the student receives in December 2019 a bill for tuition, room and board for the spring semester that begins in January 2020. If the bill is paid in December, the corresponding 529 distribution to fully or partially pay/reimburse these qualified expenses must be taken in 2019. If the bill is paid in January, the corresponding 529 distribution to fully or partially pay/reimburse these qualified expenses must be taken in 2020.
I understand this and am prepared to make a withdrawl and pay the bill that is due 12/27/19.
BUT, my daughter will be receiving $2250 in outside scholarships that won't be posted to her account until January. Since the whole bill must be paid in 2019, and the university sent a statement saying that all payments made in 2019 will be on the 1098-T for 2019, how do I "match" the scholarships received in 2020 for the billed semester in 2019? This outside scholarship will be refunded as cash to me once it hits the account.
I'm more worried about the 1098T for 2020 that will show $2250 as paid without the corresponding qualified expense.
One option I see is paying a fee to do monthly billing, paying the first payment in 2019 and then paying the rest in 2020, but am still not sure if the above statement would apply to this situation.