I paid my daughter's college tuition with money from 529 plan. She is in her first year as a CMU student. I am not qualified for AOTC because my income is over the limit ($180,000). But Turbo tax did that part correctly (I do not get any AOTC). But when processing the 529 distribution, it assumes I used $10,000 to qualify for AOTC and considered I have excess distribution of $10,000. Thus, a proportional amount of the earning portion of my distribution becomes taxable income? How do I fix that?
