Education

Let's go through step by step and keep a copy of your answers with your tax file:

1. You must take all 3 1099Q forms and add them up so you know what your goal is
2. Do you qualify for AOTC? If yes, then another goal is to have $4,000 in expenses you paid towards college.
3. Do math:
   1. High school $10,000
   2. Room and board
   3. Other qualified expenses
   4. Tuition
   5. Total the expenses
4. Compare 1099Q total to education total:
   1. If 1099-Q's are larger than total expenses, taxable income is the difference and goes on the student's return.
   2. If less than total: 
      1. If you qualify for AOTC, see another post of mine here.
      2. No AOTC, you are not required to claim education expenses. Tuck everything into your tax folder.