Tuition $11,099
Books & computer 2690
Room & board 11,175
Qual expenses 24,964
Scholarship -2,666
Used for AOTC -4,000
Expenses for 1099-Q $18,298
18298 /20428 = 89.57% of the distribution is qualified. 10.43% is non qualified
$10,685 x 10.43% = $1114 of the earnings is taxable. The 10% penalty does not apply because of the scholarship-education credit exception.
