"we paid $6036 for left balance of expenses in his account on Jan 2025"
You cannot count any 2024 expenses (for either the AOTC or 529 distribution) that were not paid until 2025.
Q. 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?
A. Only the part paid by grant, unless you records indicate what you paid.
Q. 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?
A. The 1098-T is not a controlling document. You use your own records to allocate QEE to the three tax attributes (AOTC, scholarships, 529 distribution). The $990 for the computer is QEE for the AOTC, as would be any books. Use all QEE you can for the AOTC (but not R&B).
Q. the QEE used to claim AOTC must be paid in the same tax year, right?
A. Yes. The same for the 529 distribution.
Your numbers are all over the place, but here's what I got out of it. $7443 is you net qualified expenses for the 1099-Q. Your AOTC amount is 1120 + 990 + 920 = $3030.
If the scholarship is not restricted, to being used for tuition, you can shift another$970 of tuition to the AOTC by having the the student declare $970 of scholarship taxable on his return. That gets you another 970 x 25% = $243 of AOTC. Depending on his other income, the student will pay little or no actual tax.
