@praasppn said "So now that credit is also gone." and "fully used solely for a qualified tuition".
If your ESA distribution was totally covered by qualified expenses, you do not need to report the 1099-Q at all. But. you are not required to designate all expenses for the 1099-Q. You may use some of the tuition expenses to claim the tuition credit. That may mean paying a little tax on the ESA distribution. But the American Opportunity Credit is much more generous than the ESA earnings exclusion.
Furthermore, room and board (you must be half time or more) are qualified expenses for the ESA, which may free up some tuition for the credit.
