thank you
I am talking only about my son's return. He's required to file based on his earned/unearned income. On his return, I have indicated 'can be claimed by someone else'.
Yes, the 1099-Q is fully covered. 529 payments went directly to the college to cover the full expenses (net of the scholarship), including on-campus R&B.
For the AOC credit on my son's return, there are some additional expenses (i.e. $1500 for a computer) that I was not planning to include. Instead, I was expecting to mark a portion ($4000) of the 529 profits taxable to get the higher value of the credit.
So the 529 distributions should be tax-free except for the $4000 which is treated as taxable. The problem is that the 1098-T box 5 number ($5k) is being calculated (incorrectly) as taxable.
thx!
