There is irs document 970p...the shear size of it demonstrates why their is confusion abound.
I saw this in there :
Expenses That Don't Qualify
Qualified education expenses don't include amounts paid for:
Insurance;
Medical expenses (including student health fees);
Room and board;
Transportation; or
Similar personal, living, or family expenses.
I am now not so sure that if your 529 dispersement + scholarships/grants = tuition that you can consider a commuting students food, room and board etc to be qualified towards the $4k required to get the $2500.
I think I need an accountant. Perhaps this all to complex for TT to correctly report.
I welcome thoughts....
