@MarilynG1 Thanks for the note on no need to file 1098-T and 1099-Q if phased out AOTC ($180k MAGI for joint filing) Good to know. I'm assuming this is true as long as 1098-T > 1099-Q, otherwise need to pay tax on the 1099-Q exceeding 1098-T.
Many have suggested MAGI phased out parents should have their child claim AOTC. Went through this exercise and its mostly unlikely
- For student to claim AOTC, they need to be
1. Not be a dependent (contribute 50% of their support INCLUDING tuition/room+board) This is a high number, higher with private school.
2. Probably the most well paying summer internship (say Computer Science majors) can barely approach 50% of private school total expenses. Even if paid well, student would have to use the earnings for their own support (but the parent may have already set aside 529 $ to pay for expenses) Its not impossible but just relatively rare.
3. Most likely opportunity is probably last year of school (say 1/2 year in school, 1/2 year working) for the child to claim AOTC (full time student + > 50% of their support for the year)
