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Deductions & credits
Yes.
If your daughter is eligible for the AOTC this year, you can decide to claim $4,000 of tuition to obtain the maximum AOTC of $2,500.
That leaves $8.870 of tuition to justify the 529 distribution. You can also use books and supplies and room and board to justify the balance of $6,130 of the 529 distribution. And even if not sufficient, it would leave such a small balance for your daughter to report that she would not be required to file a tax return if she did not have other income.
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March 24, 2025
9:41 AM
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