For board, you may use the lower of actual cost or the school's board allowance (essentially the meal plan charge) for on campus students. Board is an eligible expense for the 529 distribution. It is not an eligible expense for the LLC.
You are allowed to allocate your expenses. The LLC is better (20% savings) than the 529 (12% tax rate), so allocate all the tuition and fees ($7632) to it. Book cost is not eligible for LLC but is for 529. Computers and software are also eligible 529 expenses.
TurboTax can handle this cumbersome calculation, but follow the interview carefully. You'll eventually reach a screen titled “Amount Used to Calculate Education Deduction or Credit”, verify the amount you want to use ($7632) or change it. It's best to enter the 1099-Q first, then the 1098-T and expenses.
If you don't get the “Amount Used to Calculate Education Deduction or Credit” screen, Go through the entire education interview until you reach a screen titled "Your Education Expenses Summary". Click edit next to the student's name. That should take you to a screen “Here’s your Education Summary”. Click edit next to “Education Information”. That should get you to the screen titled “Amount Used to Calculate Education Deduction or Credit”, verify the amount you want to use or change it.
