The amount in box 1 seems to exactly match what we paid in 2020 for tuition, fees, room and board, minus a housing deposit. We didn't pay the spring 2021 tuition until January so it would be strange for it to be listed in 2020.
So in summary then I believe I can do the following with approximate numbers
Tuition: 6500
Housing paid to school: 5000
Books:400
computer bought by grandma: 1300
Food while at home: 500
Total: 13700
ATOC: -4000
Scholarship: -2000
Remaining qualified expenses: $7700
total distribution from 529: 11000
non-taxable distribution from 529: 7700
taxable distribution from 529: 3300
The excess 529 distribution can appear on my daughter's tax return and will be about $1800 in income. But it is not subject to a penalty because it is smaller than the ATOC credit. (I believe you avoid the 10% penalty if you have either scholarships or a tax credit covering the unqualified distribution.)
Is this all correct?
