Thank you very much! I do have another question (below, after further explanation).
Clarification: yes this is the first year he is eligible for the AOTC because he is not my dependent (23 and only a half time student). The AOTC saves him a whopping $2500 in tax credits ($1500 non refundable plus $1000 refundable). So he can apply the max $4k AOTC against his $5k in 1098-T tuition.
But, I don't want him to "use" the entire 5k tuition expense because the remaining 1k is of more benefit on my return than his (I am in a higher tax bracket than he is). On his, if he applies the entire 5k tuition, the earnings portion of the extra 1k just reduces the 10% penalty on an (unrelated) significant 529 withdrawal he took (with no offsetting QHEE, hence the 10% penalty). (He is done with school and took out the cash that remained in his 529 -- since that was his only income he pays little tax on it and the 10% penalty on the earnings portion seems reasonable.)
My question is the technical process of where to enter (i.e. what forms and line numbers) to account for the amount moving between his and my returns. I would like him to apply only 4K to the AOTC of the 5K tuition. Then on my return I will report 4k less in QHEE (somewhere) and TT will calc the earnings portion of that 4k and tax me on that amount. This tax hit to me will be less than his $2500 AOTC credit so net together we come out ahead.
Every education expense worksheet seems to have unmodifiable fields in it, so I can't figure out where to subtract the 4K in my return. I suppose I could edit the 1098-T Tuition paid from 5K to 4K (which is inaccurate as far as what the 1098-T states, but it might force the correct math...?
Thanks again!
