I did a distribution from my son's 529 plan to cover tuition and room and board.
The distribution was paid directly to me.
I am attempting to complete the American Opportunity Credit.
Total distribution on the 1099-Q is $21,162.00. Earnings of $2,028.90 Basis is $19,133.10.
Tuition is $12,148, room and board $10,694. Other qualified expenses (books/supplies) are $209.
He had a scholarship of $1,500.
The calculation in TurboTax is reducing my adjusted qualified expenses by $10,378 leaving me with adjusted qualified expenses of only $479. Is this correct? Although I'm able to pay the room and board out of the 529 plan it looks like it is affecting my qualified expenses. I have more than enough in tuition costs to cover the $4,000 credit expense cap.
