I thought there might be some holes/misunderstandings in my notes. Thank you!
--I and my spouse are the parents; student is our dependent. We did claim the AOTC.
--Student is attending college full-time, working toward a 4-yr undergrad degree, and has on-campus room&board costing $12,000.
--On the 1098T, box 1 incorrectly listed all tuition and qualified fees CHARGED in 2023 ($34,000), instead of PAID ($28,350 tuition and qualified fees).
There were several hundred dollars of books and online programs that had to be purchased not included in box 1 that we kept track of as qualified expenses ($650 + the $28,350=$29,000. total qualified exp. paid)
--Box 5, correctly showed all scholarships and grants paid to the college in 2023 only, none of the payments we made. I assumed they all had to be used for qualified expenses to possibly be untaxed. So that is a faulty assumption?-we will have to hunt down scholarship details. There were no outside scholarships paid to the student; all were paid directly to the college and reflected in box 5.
--Student worked a part-time job before beginning college and on Christmas break (~$15,000). Student also had a part-time on-campus job while school was in session (~$1,000). I do not know if this was a federal work-study position or not; I did notice that the W2 for it did not list the state (out-of-state college).
--We haven't received the 1099Q yet, but we set up all the kids' ESAs with each of them as the owner. Looking at the oldest's previous 1099Q, the child's social is indeed the recipient TIN. Box 1 across multiple funds should match the distributions received, $13,000. Box 2 will be blank. From looking at end of year statement, fair market value of the remaining amount should be $200, total of lifetime contributions $4,600.
