Since the bond interest is not taxable, you are using tax free income and don't qualify. However, you can pay taxes on the bond interest to claim the AOTC. You only need $4,000 of qualified tuition and expenses to claim the full amount. The rest of the bond interest can be deducted on form 8815.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
