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Education
Follow up to that. If we reduce qualified expenses on my parent's return by the ESA distribution then they would be under the $4000 in expenses to get the maximum amount AOTC. So it looks like as a family we're money ahead for me to pay $200-$250 in taxes/penalties and them get about $400 more in AOTC. So is this how Turbo Tax is intending to run things and we just didn't understand? IE, run the parent's first, get the maximum AOTC; then run the dependent student and let them (ME) take the tax/penalty hit for ESA distributions?
‎February 14, 2021
6:47 PM