@hockeyalexx97
Q. Do I still qualify for AOTC?
A. Probably not, but not because of the scholarship and /or 1099-Q. Those can be worked around. You say you "finished" school in 2019. Graduation year is usually the 5th calendar/tax year for college. That usually means that your parents (and/or you) have already claimed the credit the maximum 4 times. Furthermore, a full time student, under age 24, is not eligible for the refundable portion of the AOTC unless she supports herself with earned income.
Q. I've read articles on TT that say if I use a 529 to pay for expenses, I am ineligible for the AOTC.
A. Not exactly. What they are saying is you may not use the same expenses to claim both the AOTC and the 529 plan earnings exclusion (claim the 529 distribution to be tax free). You cannot "double dip". But you get to decide how you want to allocate your expenses between AOTC and the 1099-Q (it just ain't easy to do in TT). Actually, it's a 3 way allocation. You allocate your expenses to either AOTC, 529 plan (1099-Q) or scholarship. Which is better depends on whether you are still a dependent or not.
Q. How do I actually file this excess amount? TT articles say to mark it as "Other Income",
A. Yes, it goes on line 8 of Schedule 1 as other income. TT automatically puts the taxable portion of your 1099-Q, there after you enter the 1099-Q and all the expenses.
Provide the following info for more specific help:
- Are you the student or parent.
- If, student, are you the parent's dependent.
- Box 1 of the 1098-T
- box 5 of the 1098-T
- Box 1 of the 1099-Q
- Box 2 of the 1098-Q
- Who’s name and SS# are on the 1099-Q, parent or student (who’s the “recipient”)?
- Room & board paid. If you live off campus, what is school's R&B charge
- Other qualified expenses not included in box 1 of the 1098-T, e.g. books & computers
- Has the AOTC already been claimed 4 times?
- If you are under 24, Was more than half your support in 2019 from earned income?
