Q. At the screen asking if R&B was paid by scholarships or grants, after answering yes, I should actually assign the amount needed for the AOTC credit plus what ever amount of bonds I want to pay for tuition.
A. Yes.
Q. For the question asking if Saving bonds were used for higher education, I would answer yes. When I get to that page “Report Educational Expenses and Benefits” I enter the amount the of tuition I want the bonds to pay.
A. Yes. Usually the full amount the bonds were cashed for.
Q. What goes in the next box “Nontaxiable Educational Benefits Received in 2023”?
A. Nothing. There is no longer any tax free scholarships (“Nontaxable Educational Benefits") because you have made enough of them taxable for what you want to do.
