Hello,
Here is my situation: I had a 529 plan with about 20,000 in it, and have two kids (A & B).
Kid A had 15,000 of education expenses which was paid from the 529 plan to make her balance 0 leaving 5,000 in the 529.
Kid B had 20,000 of education expenses which 5,000 was used from the 529 and 15,000 cash to pay their tuition off.
Kid A left home in May, and is going to file single/not claimed as a dependent due to them not being at home + providing 1/2 of their support. Since I paid for kid's A tuition with the 529 there can be no AOTC claimed, but can I take a penalty on $4,000 by saying I am not using that for edu expenses for kid A or instead apply $4,000 of it to kid's B tuition which would free free up $4,000 on kid's A tuition to be used for the AOTC on their tax return.
Thank you
