Income options:
If your income is too high for tax deduction
1098T $15,000 - $3,000 = $12,000 paid somehow
1099-Q $16,000 covers the $12,000 above plus $4,000 of living expenses. Tuck both forms away.
If your income qualifies:
1099Q covers more room and board, say $10,000 leaving only $6,000 towards tuition. This leaves $6,000 tuition paid out of pocket by parent for a tax credit. Add the 1098T. Tuck away the 1099-Q.
AOTC income qualifies:
less than $80,000-$90,000
or $160,000- $180,000 MFJ
The AOTC maximum is based on $4,000 out of pocket expenses.
@AnnK1
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