Hal_Al
Level 15

Education

"what I am saying is that the amount on the my daughter's 1099-Q, $18,761.56, includes both tuition and room & board"

 

No.  

The 1099-Q does not "include " any expenses, at all.  It simply documents a distribution (withdrawal) of money from the plan.  It is then, up to you, to determine if you had enough qualified expenses to treat the distribution as tax free (or determine the taxable portion).  You do have enough expenses. 

Your expenses are:

Tuition and Fees: $    15,090.83

Fall housing:                $4575.87

Fall meal plan:             $2736.21

Spring housing:          $4575.87

Spring meal plan:       $1889.75

The deposit:                   $600.

Books:                              $304.87

The computer:             $1082.17  

Total Expenses             $30,856

Paid by Scholarship      -$4,000   

Net paid                          $26,856  That can be use to claim  tax benefits. You can allocate the net paid  to either the 1099-Q(s) and  the Tuition Credit.

You allocate $19,667 to the 1099-Q's and $7189 to the tuition credit.  It only takes $4000 of expenses to get the maximum American Opportunity credit .  

 

You should have withdrawn $3189 (7189-4000) less from your 529 plan, this year; saving it for next year and beyond.