Q. What happens if they are your dependents and you received a 1099Q in parent name and another 1099Q in your student's name, used 529 to pay for all of it, and want to take the American Opportunity Credit (AOC)?
A. In order to use some of the expenses for the AOC, some of the 1099-Q will become taxable. See the example above.
Q. Is the parent allowed to input the student's 1099Q onto the parent's tax return along with the 1099Q in the parent's name that was used for the same kid?
A. No. See the explanation above about "recipient".
Q. I come out better if I put my son's 1099Q onto my return as opposed to him doing a return with just the 1099Q on it for some strange reason.
A. That's theoretically possible, depending on your taxable income, but highly unlikely. Mistakes are the more likely reason.
See my instructions at your other post. It's best to have some idea of the expected outcome, when you enter your info. Short cuts are available when you review the numbers first.
