MinhT1
Employee Tax Expert

Education

You are correct. You cannot double dip by using the same education expenses to offset a 529 distribution and obtain education credits.

 

However, you cannot match the tuition you paid in 2021 with distributions from your 529 plan made in 2022.

 

So if you did not take out a 529 distribution in 2021, the tuition paid can be used for the AOTC or the LLC.

 

The problem is that the distribution you took in March 2022 has to be justified by tuition (or room and board) paid in 2022, otherwise their earnings portion will be taxable and subject to the 10% penalty.

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