if I choose to include part of tax free grant in student income and claim AOTC, should I reduce my 529 AQEE with this amount?

[Hal_Al]

Q.  Do you mean my son needs to file his federal return in order to document the reporting of scholarship income?

A. No. He does not need to and is not required to do so.  It's just a suggestion in case (very unlikely) you get questioned, by the IRS, about claiming more of the AOTC. 

Q. Can my son just fill federal tax return in TT, then fill out state tax return, then, in the end, only efile state tax return, no efile federal tax return?

A. Yes you can do that.

I'm not up on the premium tax credit and the household income requirement. So, I can't comment on that. 

[xu3]

Thanks! you are so helpful