I'm not sure how to handle in TurboTax reporting my child's college expenses when there are multiple 529 sources and I'm trying to get AOTC credit.
I'll use round numbers for simplicity.
- My freshman child has qualified college expenses of $20,000.
- Grandparent A paid $5k toward them through 529 for child (distribution to school)
- Grandparent B paid $12K toward them through another 529 for child (distribution to school)
- I paid $1k for required laptop (took distribution from 529 I have for child).
- I paid another $2k for remainder of qualified expenses (not from 529) and want to claim that $2k for AOTC.
Child does not have other income to report. Since Grandparent 1099-Q's go to child, I'm confused as to how to report it in TurboTax Deluxe.
TTax currently claiming $2500 for AOTC when I know it should be $2000 - I'm identifying child's expenses of $20K vs. just the $1k 529 distribution I took so it's taking full $2500. I didn't think I should/could enter the 1099Q's from grandparent 529s that are in child's name....but how else to reduce qualified expenses properly so I end up with $2,000 AOTC?
What steps to take in TTax? Enter child's 1099-Qs from grandparent distributions? Reduce numbers from 1099-T of qualified expenses? Or something else?
