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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%])
‎April 11, 2023
4:52 AM