Sorry, if the 529 pays the whole tuition then no one can claim the credit. So let me modify the scenario. We've paid $12,000 (rounding) for her support so far in 2025. If she uses a $4000 scholarship (which she claims as income) for fall tuition, and has the 529 pay $6000 directly to the school, then takes $4000 out of the 529 to pay her rent and groceries (so still total of $10,000 out of the 529, but none of it paid to parents) for a total of $14,000 and she supports herself all summer with the included housing and paying for her own groceries (no car so no expenses there), would she be able to claim the refundable portion of the AOTC? Her earned income would be $9000 plus the $4000 fall scholarship and she could also claim the $4000 spring scholarship as income. She's still on our medical and dental insurance but it's the same premium for 3 people as for 2 people, so do we have to count any of that as her support? Or only what we might pay out of pocket, say if she needed a filling and there was a copay or deductible that we paid?
