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Ok, so maybe he can obtain his PPL and instrument rating using 529 funds, but the rest up to Commercial won't qualify as a QEE?
Right, only expenses required to obtain the degree count as ''qualified education expenses''. If it is required for the degree, it is a qualified education expense. Some examples of expenses that arise when taking the American Opportunity Credit or the Lifetime Learning Credit are as follows:
You can deduct:
You can't deduct:
If the 1099-Q distribution doesn’t exceed the amount of the student's qualifying expenses, then you don't have to report any of the distribution as income on your tax return. If the distribution exceeds these expenses, then you must report the earnings on the excess as "other income" on your tax return. When you pay a student’s school expenses with these funds, you cannot claim a tuition deduction or either of the educational tax credits for the same expense.
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