Hal_Al
Level 15

Education

The total disbursement from her 529 plan for qualified expenses in 2022 was $22,351.66.  We used that account to pay for everything. So I believe the amount for room/board and books/supplies would be that total, minus the amount allocated for tuition last year. 

 

So, total expenses were $22, 352, not including the $5042 paid by scholarship.

$23, 352 - $4000 used for AOTC - $1994 allocated to parent's 1099-Q = $17,358 Expenses for student's 1099-Q.

17358 / 20358 = 85.26% of the earnings are tax free. 14.74% are taxable 

0.1474 x $7772 = $1145 Taxable earnings reported on the student's (amended)return. That's not enough to trigger the kiddie tax.  So, she's looking at about $75 tax ([1145 - 400] x 10%])