My daughter has an associates degree and has used 2 AOTCs thus far.
She worked the past few years but decided to go back and get a bachelors starting school in Jan 2023.
In Dec 2023 she paid $ 4,024 tuition.
In Dec 2023 she withdrew $2,024 from a 529 plan anticipating the remainder would be a $2000 AOTC.
1099 T received as expected with Box 7 checked to indicate for academic period starting 2023.
1098 Q came as expected from 529 plan.
After entering in Turbo Tax, it didn't give the result I expected.
It counted the earnings ($1320) of the 529 withdrawl as income rather than college expense reimbursement.
It gives a $2500 AOTC rather than the $2000 expected.
Is this supposed to be how it works? Or have I don't something wrong in Turbo Tax.
