AmyC
Expert Alumni

Deductions & credits

Let's back up. and go through your original list and the new.

The laws have changed and more people qualify for AOTC this year.  

The phaseout for  AOTC is:

$80,000-$90,000 or

$160,000- $180,000 MFJ

 

@KrisD15 is correct, if the 529, 1099-Q, was completely used for college expenses, you do not need to enter the form. Just tuck it in with your tax information. See Turbo Tax article  Guide to IRS Form 1099-Q: Payments from Qualified Education Programs and Publication 970, Tax Benefits for Education.

She is also correct that your son may benefit from claiming AOTC.

 

If you do qualify for AOTC, then you would see if you can shift more of his scholarship / 529 to room and board to give you $4,000 paid out of pocket for the credit. I realize you said your withdrew more than expenses. Please see my 529 example with IRS information here   and here.  Part of the AOTC is refundable and part of it reduces tax liability. Up to $1,000 is refundable so it could be that the AOTC is split into 2 places on your return. You could have $1,500 on sched 3, part 1, line 3 and then have $1,000 on the 1040 line 29 from the form 8863.

 

I am also going to recommend you look at another of my answers for help.

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