My son attends a four-year university. I am now preparing tax return of 2024. the following is his expenses and payments:
2024 fall term tuition is $9068
2024 fall term scholarship is $7948, so the QEE of 2024 fall term is 9068-7948=$1120.
2024 fall term loan is $2227
2024 fall term R&B is $7443
we bought a $990 laptop for his study use in 2024
we paid $6037 for left balance in his account in Aug 2024.
2025 spring term tuition is $8868, posted to his college account on Dec 11, 2024
2025 first term grants is $7948, credited to his account on Dec 15, 2024, so QEE of 2025 first term is $921.
2024 fall term loan is $2227, credited to his college accoun on Dec 29, 2024
2024 fall term R&B is $7443, posted to his college accoun on Dec 11, 2024
we paid $6036 for left balance of expenses in his account on Jan 2025
I withdraw $8400 from my 529 account in 2024.
my son's 2024 1098-T, the box1(tuition) is $17936, the box 5(grants) is $15895. I want to claim AOTC in my 2024 tax turn.
Pub 970 says "treat loan sent directly to college as paid on the date the college credit student's account." so in 2024, we paid $2227 for 2025 first term expense, which is more than QEE of 2025 first term =$921. Aslo, the 2025 first term grants were also credited to my son's account in 2024, so all QEE of 2025 first term is paid in 2024, right?
if so, then, can I, and I have to, use the 1098-T box1 (tuition) of $17936, and box5 (grants) of $15895 to claim AOTC in my 2024 return? the QEE used to claim AOTC must be paid in the same tax year, right?
if so, will my AQEE for 529 withdraw in 2024 tax return, be $7443 of 2024 R&B + $990 of laptop +($2227-$921) =$9739? the ($2227-$921) is paid in 2024, but toward expenses in 2025.
Or my 529 AQEE of 2024 return is the $7443 + $990 =$8433 for the expense of only 2024?
