Thank you so much for the detailed response! Three follow up questions please regarding the AOTC and any other tax credits rendered against tuitions expenses.
1. Is the reason my daughter isn't eligible BECAUSE I paid all of her tuition from a tax-exempt vehicle (529 plan). Is that what they refer to as 'not double dipping'? I want to make sure I am fully understanding this.
2. Regarding planning for this year, I've already paid all of her college expenses for winter semester but can pay with a mixture of 529 and out of pocket money this Fall. Is $4000 the magic minimum number I need to pay out of pocket to be eligible for all tuition-related tax credits?
3. What are the tuition-related tax credits and can they be taken concurrently? If my daughter is doing 4 years of college (currently a freshman), that will actually span 5 tax years. I think the AOTC is only applicable for 4 years? In other words, have I really 'lost' anything by missing out in the Fall 2021 and how do I make sure to capture all tuition tax credits from this point forward. If I keep payinig in full from the 529 it seems I will be missing out on 'free money' from these credits. Combined household income is less than $130k.
Thank you!
