- Are you trying to claim the tuition credit (are you eligible)? I'm not sure what this means...
The government offers generous Tuition tax credits. The most generous (American Opportunity Credit) is 100% of the first $2000 of tuition paid and 25% of the 2nd $2000; up to $2500 total tax credit. You want to claim this credit, even if it means paying some tax on part of the 529 distribution. But, upper income people are not eligible.
To claim the full credit, your modified adjusted gross income (MAGI) must be $80,000 or less ($160,000 or less for married filing jointly). You receive a reduced amount of the credit if your MAGI is over $80,000 but less than $90,000 (over $160,000 but less than $180,000 for married filing jointly).
