@Hal_Al Thanks for such detailed response! In your scenario, if I only withdraw $3000 from my son's 529 plan, there should be no tax on the earnings. I will have to file my tax return to claim for AOTC, and my son has to file his tax return for 1099-Q even though he doesn't have any income. Is that right? Also, I would like to confirm that non-qualified education expenses from a 529 account are expenses such as transportation, personal and miscellaneous expenses. I would assume that tuition surcharge by some colleges is counted as tuition.
