@Carl
I reached out to the college to discuss the 1098T and looked on line at her statements.
Here is what I found. The difference between Box 1 and Box 5 is $7565. That is the amount I paid on 1/10/2020 for the Spring semester. This is not on the 'tax year' 2019 1099Q because it was distributed in 2020.
The $7590, paid directly to the school on 8/13/2019 is what is on the 1099Q.
If the 1098 is supposed to represent 'academic year', then both 7565 + 7590 should be reflected on line 1.
If the 1098 is supposed to represent 'tax year', then Box 1 is still wrong and should have included the 7590 and not the 7565.
Box 5 still is only showing her academic scholarship of 16650.
If what you stated prior is true, that the Box 5 should INCLUDE the 529...and then my box 1 minus box 5 would be zero. Would I loose my ability to claim the AOTC?
Or, to change the question..."Does paying for college using a 529 distribution still allow you to qualify for the AOTC".
