Who is the 1099-Q issued to, the parent or the beneficiary/child/student?

Are there qualified expenses that the 529 plan can be applied to (including Room & Board)?  If the 529 plan is applied to qualified expenses (after removing the amount for the AOC) then nothing is taxable.  If there are not enough qualified expenses, then yes, part of the 529 distribution will be subject to tax and often a penalty.