@confusedrf -
Q. "Is that about the size of it?"
A. Yes.
@Funkhowser -
Q. Perhaps this all to complex for TT to correctly report.
A. Yes.
Q. I think I need an accountant.
A. Not really. You appear to have done the math. You know you have sufficient expenses to cover the 1099-Q and claim the AOTC. Stop trying to make TT do it your way. Don't enter the 1099-Q. Do enter the 1098-T and claim the credit. Keep good records.
I personally have been "audited", by the IRS, over the 1099-Q (even though I entered it all in TT). It was a simple matter of showing them the school's billing statements to get it cleared up.
