Hello Carl:
Thanks very much for your detailed and thoughtful response. I purchased the download/desktop version of TT; so I can take advantage of multiple filings. Your explanations of the pitfalls of the online version will nevertheless be helpful to other users who read it.
I have also gone carefully through your write up on the determination of who claims the education credits, and have one immediate question. It arises from the fact that you use the expression "scholarship/grants" in the education chart/figure and many times in your textual descriptions.
However, I notice that in only one place in your written description, you add a 529 plan to those items, "scholarship/grants/529 funds". This seems to suggest that 529 funds are different from grants (and of course scholarships), but nevertheles in the same category. However, this is the only use of the words "529 funds" in your written description.
As 529 plans are not used in the pictorial chart, I was led to the left hand side of the figure and ended up with the box that says "Parents claim all ...". Whereas, if the previous decision box ("Scholarships and grants do not cover...") had also included the words "529 funds", I would end up with the box on the right hand side "Student claims all scholarships,...".In other words, the opposite conclusion.
This is a significant difference because, in my situation, I inadvertently paid all expenses (qualified per 529 rules but not all per AOTC rules) with 529 funds. Thus, it would appear that I might end up on the lower right hand box of your chart because the "scholarship/grants/529 funds do not cover all qualified expenses" is now FALSE. However, the text as written without 529 directs me to the opposite conclusion.
So, am I correct in saying that you inadvertently left out 529 from the expression "scholarship/grants" throughout the text and the picture, and we should read that phrase as always including it?
Thanks for any clarification.
Best regards.
