I follow and agree with you until you got to this statement:
"$3590 that my daughter could put on her return as qualified tuition to offset the 529 earnings."
$3,590 of the $7,590 or 47.3% that was in box 1 is not sheltered, That means that 47.3% of box 2 is not sheltered as well. So 47.3% of $4618 = $2184 will be earned income on her tax filing (I assume her social security number was on the statement - being the beneficiary isn't the critical factor, it's the social security number that is the critical determinant of whose tax filing the 1099Q goes on).
if her income is lesser of earned income +$350 or $12,200, she is not required to file (unless there are withholdings in which case the only way to get the money refunded is to file)
and then, yes, to this question:
Can I so split the qualified tuition paid via 529 across mine and my daughters returns so I still get the AOTC and shelter part of the 1099-Q earnings on her return? Thanks!
