ok, thanks, i think you're telling me that if all of her tuition, room and board are paid with 529 funds, then she is ineligible to claim the american opportunity credit. So, why is TT showing that she gets that credit? I entered the 1099Q directly on her tax form as if she had received it herself so TT should clearly see that all of her expenses were covered by proceeds from the 529. yet it is still showing she is eligible for the credit. Is it possibly because that only the investment gains represent the non-taxable event?
