The AOTC is 100% of the first $2000 of expenses (and 25% of the next $2000). So, you're better off claiming the first $2000 of computer cost for the AOTC rather than making the Pell less taxable. Likewise, you're better off claiming the first $2000 of computer cost for the AOTC rather than as a business deduction. $1549 of computer expenses = $1549 credit.
