Thanks. Using the correct numbers it looks like I will still be able to claim a partial ($2000) AOTC and pay a small amount of tax on the scholarship and an excess 529 withdrawal; I ran some numbers and trying to get the full $2500 AOTC actually costs more than $500 in additional taxes. It makes me wonder if I would have been better paying the Spring 2021 bill early, but that ship has sailed. ⛵
Edit - also thanks for mentioning adding the 529 withdrawal rules. In the future I will send the funds directly to the school so that a small excess withdrawal will not cause any additional taxes.
