You made my hurt a little on that lol. In Iowa there is an other income line specifically to recapture 529 distributions that were not used for education expenses. I have a feeling that since Iowa taxes everything they can get their hands on there would be no exceptions. Will try to check it out more later in the year. Thanks for the insight.
Oh good, I'm a big guy so I was able to absorb most of the damage. Made my head hurt a LOT! Glad to hear yours only hurt a little!