1) assuming your claim your child as your dependent, the 1098T goes on YOUR tax return
2) of the $6424 of expenses, $4000 get consumed to take advantage of AOTC. Ensure your tax return reflects this $2500 Credit. That leaves $2424 of expenses ($6424- $4000)
3) Then the other expenses are $837+ $4616 + $759 to be added to the $2424 or $8636.
4) Whose social security number is on form 1099Q???
5) Since the 1099Q distribution was $19,000 and there is only $8636 of expenses, that means $8636 / $19,000 of Box 2 on Form 1099Q is NOT taxable; the rest or 54.5% of Box 2 is taxable.
6) It is taxable to whomever's social security number is on form 1099Q. If that is your child, it may not be the biggest problem in the world. As long as the childs total income is less than the lesser of earned income $350 or $12,000 AND there is no tax withholding, there is nothing is taxable and there isn't even a need to file a return.
the open questions are really 1) whose social security number are on Form 1099Q and 2) how to deal with the fact that you took the distribution in late December, but the payment didn't occur until January, Please read the rest of the thread and decide whether you consider risking an IRS audit and just saying that January payment goes with the 1099Q distribution.
