xu3
Level 3

if I choose to include part of tax free grant in student income and claim AOTC, should I reduce my 529 AQEE with this amount?

my student has tuition and fee + books=9155,

total tax free grants scholarship=7948,

room and board +laptop =8433

student loan=2227

9155-7948=1207 can be used for AOTC,

AQEE for 529 =8433, so I can withraw 8433 tax free from my 529.

 

if I include $2793 grant scholarship in student gross income, then, I can get $4k expenses to claim AOTC,

Is my 529 AQEE still 8433 or will be reduced to 8433-2793=5640?