Thank you. I appreciate your knowledge on this. I still get stuck at one point.
*"Allocate first to the 1st 1099-Q, since it's earnings percentage is higher than the 2nd. My math says the 1st 1099-Q is fully covered. About 80% of the $900 earnings in box 2 of the 2nd 1099-Q will be taxable. "
Can you explain exactly how this works?
Right now, barring finding some more expenses when I examine the student's account, if we just go with what was paid out of the 529s, once I allocate for the $4000 of the AOC, I have about $9000 there. But about $12,000 distributed from the first 529.
Here is where I get lost.
