Q. Is this all correct?
A. Yes, basically.
I don't see where you said how much was in box 2 of the 1099-Q. But apparently you used that amount the calculate the $1800 taxable income.
Technically, the $1800 it is not subject to a penalty because the $3300 (not $1800) is smaller than the AOTC. Yes, you avoid the 10% penalty if you have either scholarships or a tax credit covering the unqualified portion of the distribution
