I received a 1099-Q from a Coverdell ESA account for my daughter.
Box 1 Gross Distribution was $15k and there was nothing on Box 2 Earnings.
We paid $12873.70 for her tuition (1098-T box 1: $13,623.70, box 2: 750.00)
Can we still receive AOTC?
Yes.
If your daughter is eligible for the AOTC this year, you can decide to claim $4,000 of tuition to obtain the maximum AOTC of $2,500.
That leaves $8.870 of tuition to justify the 529 distribution. You can also use books and supplies and room and board to justify the balance of $6,130 of the 529 distribution. And even if not sufficient, it would leave such a small balance for your daughter to report that she would not be required to file a tax return if she did not have other income.
Yes.
If your daughter is eligible for the AOTC this year, you can decide to claim $4,000 of tuition to obtain the maximum AOTC of $2,500.
That leaves $8.870 of tuition to justify the 529 distribution. You can also use books and supplies and room and board to justify the balance of $6,130 of the 529 distribution. And even if not sufficient, it would leave such a small balance for your daughter to report that she would not be required to file a tax return if she did not have other income.