Q. Are you saying that I can delete the 1099-Q from his tax return as 100% of the distribution from the 529 went to a qualified tuition payment?
A. Yes, as long as there was no double dipping Counting the tuition for the AOC and/or tax free scholarship.*
Q. Does all this make sense to you, is this the correct approach?
A. Generally, but with, at least, a couple of adjustments. 1. Change the $10K to $4000 (not 0), the amount needed to get the maximum AOC. 2. Enter room and board expenses, and any books, computer expenses.
*If you know that the room and board and books &computer expenses plus the tuition not used for the AOC totals more than the box 1 amount on the 1099-Q, you can delete the 1099-Q from his tax return as 100% of the distribution from the 529 still went to a qualified educational expenses (it doesn't have to be just for the tuition). Student must be half time or more to count room and board for a 529 distribution.
