artp Posted April 3, 2019 Report Share Posted April 3, 2019 $153.61 of the earnings need to be included on parent’s return as income. Client has son attending college (4th year for AOC) and received 1099Q for payments from QEP: Box 1 Gross Distributions $17,980.63 Box 2 Earnings $ 6,325.69 Box 4 Basis $11,654.94 Box 6 checked Amounts were not paid to designated beneficiary or college direct, but to Mom who sent payments to college Total Billings from college $ 28,000.00 Scholarships & Grants 6,456.00 Expenses to take AOC 4,000.00 AQEE 17,544.00 Payments reflected on bursar’s statements: Paid by ACH/Credit Cards 17,544.00 Other qualifying expenses for classes 523.23 Total amounts paid 18,067.23 Tax-free 17,544/17,980.63 x 6325.69 = 6172.08 Earnings 6325.69- tax free 6172.08 = 153.61 Quote Link to comment Share on other sites More sharing options...
Pacun Posted April 4, 2019 Report Share Posted April 4, 2019 I would ask the student if they spent any money from their pocket to buy books or other stuff that can be added. Let's say that the student spent $200 in books, I would take only $3,800 for AOC and add $200 as book expense. 1 Quote Link to comment Share on other sites More sharing options...
artp Posted April 4, 2019 Author Report Share Posted April 4, 2019 That was the $523 of other qualifying expenses. I was wondering if this could be added to bring the AQEE to $18,067.23 and then there would be no income to include on the return and they could still get the max AOC of $2500 based on $4000 of qualifying expenses? Quote Link to comment Share on other sites More sharing options...
Lion EA Posted April 4, 2019 Report Share Posted April 4, 2019 Can 529 be used for room & board? Saving tuition for scholarship and AOC? Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted April 4, 2019 Report Share Posted April 4, 2019 Yes! Quote Link to comment Share on other sites More sharing options...
artp Posted April 4, 2019 Author Report Share Posted April 4, 2019 Lion, Per my reading TTB p 12-6 yes you can used room & board for 529. Quote Link to comment Share on other sites More sharing options...
artp Posted April 8, 2019 Author Report Share Posted April 8, 2019 Thanks for all of the replies! I appreciate the feedback Quote Link to comment Share on other sites More sharing options...
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