Thank you! Your answers are very clear and understandable.
I have a question with regard to the following Q&A below:
Q. On my son's return, list $42,000 in remaining qualified expenses (so as not to double dip) and then have $4,000 of the scholarship (or withdrawals) be taxed as income?
A. Yes. Depending on his other income, taxed scholarship is usually best. It's not the withdrawal amount that gets taxed, it's only the earnings portion.
He does have income from part time jobs, a signing bonus for a job starting in 2023, scholarships, and then the 1099Q reported withdrawals from the Coverdale. When you referred to the "withdrawal amount" not getting taxed, but the earnings portion..were you referring to the money drawn from the Coverdale Account vice the scholarships? I'm not sure why the scholarship would be better given I can provide the basis and Earnings for the Coverdale withdrawal.
If it is better to use one or the other (scholarship vs. Coverdale), how/where does one make this selection in turbotax (I have the download edition)?
