Q. So I think I cannot claim the tuition credit since all expenses are covered. Do you agree?
A. Yes and no. Yes, on the surface, that is correct. But there are ways around it .
First, I disagree that there is no room and board or anything above that. If he is living at home, he can't count "room" unless he is paying you rent (and maybe not even then). But he can count food (board). You can keep track of food expenses or use the school's meal plan cost for on campus students
Since the tuition credit is worth as much as $2500, you want to claim it first even if it means paying some tax on the ESA distribution and/or scholarship.
You'll have to calculate the earnings portion of the distribution, since the plan administrator didn't provide it. You do this from your own records. If boxes 2 & 3 were blank, some where on form 1099-Q they tell you the Fair Market Value of your account, which may or may not be helpful in that calculation.
