Thank you Hal_Al. It is my first time dealing with a 1099-Q, so when the parent switches beneficiaries then there will be two lines, correct?
Pretty much there are are is a 20,000 dist. 1099-Q from a 529 plan, and the parent told me that there was 16,000 in education expenses for child A, so I believe she took the remaining $4,000, and paid for child B. There is another 1099-Q with child B on it and it is in state (box 5) checked.
Since child A went on their own, and can take the credit, I am trying to get the credit for her without taking the penalty on the parent's return along with them being in the 35% bracket + ~4-5% in state states, so it would be around 50% tax on 4,000, so 2000 for the benefit of $2,500 on child As return. It would be worth it, but defeat it a lot.
I do really appreciate all your help.
