529 distribution for study abroad, are earnings taxed ?

[Melathome]

Client withdrew 529 plan money for dependent child to attend university in Europe.  My understanding is you can use 529 plan funds to pay for qualified expenses if the study program at the foreign school is 1) eligible for credit at the student's US home institution, and 2) if the foreign institution is eligible for federal student aid.

This school has a code on the FAFSA list but the dependent is not associated with any US college, its just her foreign school of choice.  No 1098-T received. Are the earnings on the distribution taxable ? Pub 970 doesn't really address the first requirement.  Thanks.

[Terry53029]

I would say yes. See link under  general definition of institution of higher education

https://www.govinfo.gov/content/pkg/COMPS-765/pdf/COMPS-765.pdf