A 529 plan is a college savings plan that offers tax and financial aid benefits. 529 plans may also be used to save and invest for K-12 tuition in addition to college costs. There are two types of 529 plans: college savings plans and prepaid tuition plans. Almost every state has at least one 529 plan.
If you received a 1098-T from the higher educational instution, you may claim AOTC even though the tuition was paid through 529 savings plan The plan that your mother set up was a prepaid tuition plan wherein the tuuition paid to the school,to get a degree or diploma, can be used to claim AOTC.
