So we are eligible for the AOTC.
So, let me see if I understand based on your example above
$33,917 - total cost including tuition/fees/room and board
$17,000 - paid by scholarship ($16,000 for tuition and $1000 for room and board)
$4000 used to claim AOTC (I think its $4000, where would I find this in our return? is it line 27 on 8863 for student)
= $12,917 can be used against 1099-Q
Box 1 of 1099-Q shows $16,267
Box 2 is $8,211.10
$12,917/$16,267 =0.794 - so 20.6% is taxable
which is $8211.10 * .206 =$1,691.49 is taxable and goes on her return? If so where do I put it on her return? Is it just other income or is there somewhere specific I put it.
Is my math correct?
