Our income exceeds 180k and we withdrew 25k from 529. How should I enter this expense? I could not enter it because "the income exceeds limit, not qualified for AOC".

[KrisD · Accepted solution]

If you are claiming the student as your dependent and you are not eligible for a credit, if the distribution was not more than the education expenses, do not enter the 1098-T nor the 1099-Q. 

If the distribution was more than the education expenses you paid in 2018, you will need to enter those forms in order to calculate the taxable portion of the distribution. 

According to the IRS:

“Generally, distributions are tax free if they aren't more than the beneficiary's adjusted qualified education expenses for the year. Don't report tax-free distributions (including qualifying rollovers) on your tax return.”

CLICK HERE for IRS Pub 970, Tax Benefits for Education