It only takes $4000 of qualified expenses to claim the AOC. The $5000 paid by the uncle is ignored.
50K -15K - 4K = 31K can be used against the two 1099-Qs (grandfather & parent's 529).
It's not clear what "Paid by parents from 529 - Used for AOC 10,000" means. Is box 1 of the 1099-Q $20K or $10K or $14K or something else?
