npkressen
New Member

Room and Board / Educational Expenses / AOTC

Doing daughter (non-dependent) 2023 tax return.  There is no 1098T b/c tuition for final Spg, 2023 term was paid in 2022. She had $6400 R&B and $88 books/supplies costs, which were paid with 529 Plan distributions. She wants to take advantage of AOTC -- which SHOULD produce a $1000 benefit (the refundable portion of AOTC) b/c her income is low enough to not have any income taxes due -- even with inputting $4000 as "excess distributions from 529" ($2700 of which is from Earnings, and thus taxable) in order to get the AOTC to be generated.

The issue is that we cannot get the $6400 R&B to show up as a qualifying ed expense (it SHOULD BE, since it was paid out of the 529 Plan distribution, right?).  We have looked over the "Student Info Worksheet" tables and Form 8863... and cannot figure this out.  TT produces an AOTC (refundable credit) of just $35 -- related to just the books/supplies costs...

Please advise if you have a way to get the R&B expenses to show as counting toward the AOTC calculations?...

Thank you.