Ok, I see what you are saying. I called the college to get more clarification and they only could state “all scholarships/grants go to education expenses”. This appears to mean it is not restricted to paying tuition, thus an option to claim an AOTC credit.
Although, in looking at your response outlining the scholarship option vs 529 option, it looks like you referenced $2,816 in total income for my daughter’s 2022 personal taxes. She has W-2 income of $15,604 and 1099-DIV of $163. Total Income of $15,766, resulting in $2,816 above the standard deduction of $12,950.
With this added detail, does the scholarship option go away?
Also, I’m not sure what you mean by “kiddie tax”.
