"I would have to convince them that the fact that I let my daughter stay home somehow equated to 4K+ in expenses..."
Hi @confusedrf , been struggling with the same question. Similar situation with slightly different numbers.
Did you end up filing with or without the 1090-Q? Seems like a lot of advice here to not include it at all...and just save the records and submit details if there is an inquiry letter.
I found a way to enter the adjusted qualified expenses, including computed 'live at home' expenses (less than the College's COA guidance) directly into the 1099Q form (using 'override') to zero out any 529 axes or penalties.
I am convinced that using a calculated Room & Board even when commuting is legit !
But, it seems to me that If we can legitimately claim this then why not enter it into TurboTax (rather than ignore the 1099Q). Is my method of entering it into the forms directly legit? I don't know...it's all in this post (for someone else to trip over):
https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-american-opportunity-tax-cred...
TurboTax clearly cannot handle this from an 'interview'/walk-through perspective.
So did you file or give in and go to an accountant ?
Still trying to decide here whether to file with or without the 1099Q. That is the question! @Hal_Al is awesome and has provided a consistent message on this to many folks ("Just don't file the 1099Q"). I'm just wondering what others have actually DONE. I don't want any letters from the IRS (to my daughter).
