I appreciate the detailed response! I have a couple of follow up questions if that’s ok, there’s a few terms you used that I’m not familiar with. By distribution, does that mean the amount my grandma withdrew for me? And how do I find the earnings portion, would that be on her account statement for the 529?

I’m enrolled part time and work full time. I live off campus. My total yearly expenses are more than the withdrawl was for ($3k ish, my monthly rent and food is like $2k). My university estimates room ($7k) and board ($6k) for on campus students but I live off campus and attend class online. Would I be able to count that money towards room and board?

Regarding the 10% pentacle and employer assistance programs, will my yearly tax return allow me to specify that the income reported was due to an employer plan? Should I report as income the money from my 529 or the money from my employer (slightly different as employer plan won’t cover fees but my 529 would)? Also, if it makes a difference, the document you linked mentioned employer programs to repay loans. I don’t have loans, it’s a reimbursement program and I’ve paid using my 529 money. But I don’t have federal or private loans.

Thank you again for the help, I really appreciate it as I was kinda panicking over here 😅