Forget room and board and COA for R&B. They are only QEE for the 529 distribution. We already know we have enough to cover the $4000 on the 1099-Q. And any left over are only non-qualified expenses for scholarship or AOTC.
Forget non-qualify expenses. Nobody tries to account for that. They just declare the amount of scholarship that needs to be taxable.
The only tuition paid is $4,895, period. And that's covered by a restricted scholarship. So none of it can be used for the AOTC. I would go to the effort to verify the restriction before I deprived myself the full AOTC. Restricted scholarships, within a larger lump sum amount, are unusual.
This means the only expenses you have for the AOTC are fees & books (you can also include a computer). I'm not gonna try to decipher your numbers. You need to decide what that amount is from your own records. I'd also go to the effort of verifying that box 1, of the 1098-T, included R&B (that's unusual).
Since we know the amount of expenses, for the AOTC, is most likely less than the $4000 needed for the maximum AOTC, that means there are no qualified expenses left over for the rest of the scholarship. That means the taxable amount of the scholarship is $4672 (9567 -4895).
