AOTC Credit

Forum|Forum|1 year ago
March 26, 2025
10 replies
79 views

Please advise if parent's can claim AOTC credit on their returns if they pay students room and board expenses using kids 529 savings plan (Student is the Beneficiary and Parent is the owner) after meeting all other requirements?

Ask the Experts - Education - Mar 2025

RobertB4444

Alumni - Intuit

The AOTC is only for tuition. So as long as one of the other requirements that you met is that you paid their tuition as well then yes, you can claim the AOTC. But the room and board expense doesn't qualify for the AOTC.

@MBINAT

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MBINATAuthor

Level 2

Thanks. But Turbo tax software is adding AOTC credit after I enter room and board expenses. Isn't it a bug in the Turbo tax software? There is a small tool tip next to room and board while entering 1098-T, it says room and board expenses are allowed if we pay by 529 plan. I talked to one of the experts and they said we can claim if we pay room and board expenses using 529 savings plan

DawnC

Employee Tax Expert

Room and Board can be paid from 529 distributions. However, room and board is not a qualified education expense for the purpose of taking education credits.

But, if you apply the 529 distributions to room and board, that can free up tuition payments that can be used to claim the credit.