I have a 26 year old son, who is no longer a dependent. He returned to school in 2025 (only attended one year prior to 2025). I withdrew our remaining funds ($16K) from a 529 plan (I was the recipient) to pay for educational expenses ( $14K in tuition), but also paid for room and board for Aug - Dec ($3K per month based on school's published Cost of Attendance). So basically there were more qualified expenses than the 529 funds covered.
I am not reporting the 1099Q in my taxes since all of it went towards qualified expenses. Since his is independent, he is filing his own taxes (he had an income for 2025 because he worked prior to returning to school). He received a 1099T from school which was entered into his tax filing. His taxes are reporting a $1000 American Opportunity Tax Credit.
everything I've read is you can't "double dip", but I have been told that there is no double dipping since the 529 disbursement and the AOTC are on two separate tax returns. Please advise if I am doing anything wrong.
