The economic institution — we’ll use EdVest for instance — then reports the sum total out of all the distributions had been designed to the IRS. This might be reported on a Form 1099-Q, which reports the quantity of the distributions (although not the information), the part of the circulation that came from profits within the account, together with part that was a return for the contribution that is original.
You need to have held documents of all the expenses you made you used on the “qualified academic costs. As you will need to compare the full total of these economic institution’s distributions towards the total of exactly what”
You will report this in your income tax return at the end of the year, but there will be no tax consequences if you spent all of the distributions on qualified expenses.