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Retirement tax questions
Robert
Ok -thanks - I was confused but now Ill be using the1098T for calculating the credit I'm more than covered by Box 1 being in excess of 50K with 20K scholarship.
On the 529 front where all this $ is coming from thanks to investing at birth in 2003, the room and board does count as a qualified expense and enables one to pay for the majority of that with 529 funds and still get an AOC if they use $4000 or more of their own non-529 money? Correct??
I did not directly pay the school from the 529 because it's always dicey over Christmas to New Year's because the school does not accept or make it easy for third parties (brokers) to electronically send the money. The first year it took 10 days via US MAIL. I now, first send the 529 $ to my daughter's checking account, and then she immediately transfers it to the school in the exact same amount(s) so we have a nice paper trail. IS THIS OKAY?
Last question:
With that 20K scholarship would the student have to pay taxes if they made $5K over the summer? Im thinking NO as that 20K was used for the qualified deductible expense of tuition as she is working toward a BA.
thanks