RAF944
Returning Member

Can you apply a single1098-T to both a Parent's return (to qualify for AOTC) and a Dependent's return (to reduce interest on their 529 withdrawl)?

I have a dependent child who received a 1098-T and a 1099-Q.

  1.   I understand that I need to enter the 1098-T on our tax return to claim the $2,500 American Opportunity tax credit (which applies to the first $4,000 of qualified expenses).
  2. Can I apply the remainder of the qualified expenditures (beyond the first $4,000 so, no double dipping) to my dependent’s return? This would offset the interest from their 529 that’s reported on their 1099-Q?

I checked past posts for an answer, but saw conflicting information and wanted to see if there was a definitive answer. Thanks in advance for any help.