---

@AnmarieA wrote:

After the distribution the child was awarded additional scholarships amounting to $2,000

Hence the Form 1098-T showed in box 1 and box 5 lower amounts due to the $2K reimbursement and higher scholarship.

Now the 1099-Q is less than the 1099-T and the taxpayer is being taxed on 100% of the interest earned on the 529 account.

---

Box 1 should not have changed.

Only $2000 would be subject to prorated tax, but it wouldn't be 100% (it would be prorated based on earnings versus Basis).

But take a step back.  If there were at least $2000 of qualified Room and Board expenses, none of it would be taxable.

As for your question about how to enter it into ProConnect, unfortunately, I can't help you with that part.