@Funkhowser Yes, you qualify for the $2500 AOTC. For a 529 plan distribution, room and board are qualified expenses, even if the child lives at home. Use your actual expenses or the school's R&B charges to on campus residents, which ever is less. You don't need receipts.
Books, book rentals, lab attire and the summer course are also qualified expenses for both 529 and the tuition credit.. Commuting cost is not, nor is the parking fee.
Yes the interview goes smoother if you enter the 1099-Q first, then the 1098-T. Better yet, don't enter the 1099-Q, at all. If your student-beneficiary has sufficient educational expenses, including room & board (even if he lives at home) to cover the distribution. You would still have to do the math to see if there were enough expenses left over for you to claim the tuition credit (you do). You cannot double dip! When the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax will enter nothing about the 1099-Q on the actual tax forms. But, it will prepare a 1099-Q worksheet for your records, in case of an IRS inquiry.
