Ive got a "kid" with over 170k in a Coverdell ESA, hes NOT going to be using it for educational purposes.

2023 they took 48k out of the account.  The 1099Q shows the 48k in box 1, but doesn't have anything as earnings or basis (not zeroes, just blank boxes).   How does it work when its been contributed to over 10 years?   Isnt that the job of the bank to show whats basis and whats earnings?  If earnings and basis are blank, is this just a return of investment?

Ive been goofing around with it and even when I put a basis and earnings in it, the entire 48k shows up as taxable AND subject to penalty.

Shouldn't only the earnings be taxable? I can understand the penalty on the full amount for not using it for school, but the entire thing shouldn't be taxable, it was funded with after tax dollars.  I have to be missing something somewhere.....

P.S. Every freaking person today was a train wreck, Im ready to lose my cool.