You bring up a good point about maximizing the AOC. But when you report tuition, you are only allowed to deduct what is reported on a 1098-T. Otherwise, the 1098-T reported on the return will not match the data the IRS receives. This may generate a mail audit. When it comes to deducting prepaid expenses, Box 7 needs to be checked.
The only exception to the 1098-T reporting requirement that I'm aware of is when the tuition was paid to a foreign school and a 1098-T was not generated.
