"Q. it seems that putting in $483 (instead of the $3000 that you suggested) to reduce Tax Due on Income to $0 minimizes the Excess Distribution.
A. That doesn't matter (only in this special case) because the tax is going to be 0, no matter what you enter. "
Minimizing the Excess Distribution to have less taxable income does lower state taxes.
Since the credit is non-refundable, doesn't it make since to just force the tax due to zero and minimize state income tax?
Also, student has only two years of undergrad remaining. He was on parents tax return during first two years with 529 being used instead of the AOC.
