MinhT1
Expert Alumni

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.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post