Hello. My name is Ruth, CPA.
I will address your questions in the order you presented them:
1. He is able to file as single, and indicate no one else is claiming him as dependent.
2. For purposes of calculating the AOTC and the taxable portion of the 529 distributions, we cannot provide calculation assistance for your specific circumstance on the forum. For instance, even though the school appears to have reported the tuition and fees after scholarships are applied in Box 1 of the 1098-T, you'd still be able to make adjustments in further screens indicating the amount of tuition and fees before scholarships are applied.
We recommend reaching out to our team of Tax Experts either through Live Assisted or even Full Service to walk through the specifics.
3. Qualifications to claim the AOTC are the following, the student must:
- Be pursuing a degree or other recognized education credential
- Be enrolled at least half time for at least one academic period* beginning in the tax year
- Not have finished the first four years of higher education at the beginning of the tax year
- Not have claimed the AOTC or the former Hope credit for more than four tax years
- Not have a felony drug conviction at the end of the tax year
To be eligible to claim the AOTC or the lifetime learning credit (LLC), the law requires a taxpayer to have received Form 1098-T, Tuition Statement, from an eligible educational institution, whether domestic or foreign. Generally, students receive a Form 1098-TPDF Tuition Statement, from their school by January 31. This statement helps you figure your credit. The form will have an amount in box 1 to show the amounts received during the year. But this amount may not be the amount you can claim. See qualified education expenses in Publication 970PDF, Tax Benefits for Education, for more information on what amount to claim.
