jasdlm Posted March 19, 2022 Report Share Posted March 19, 2022 I know that housing isn't an eligible AOTC expense, but since housing (w/ all the rules/caveats) is an eligible 529 expense, do you use the housing cost that's eligible under the 529 rules when calculating AQEE and tax-free earnings? I haven't been, but now I'm questioning whether I'm cheating my clients. The one I'm working now would have 0 addback and still qualify for maximum AOTC if I include the allowable housing. Thanks much. Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted March 19, 2022 Report Share Posted March 19, 2022 Yes, I do. I have a little spreadsheet that has the qualified tuition less AOC then remaining expenses. To that I add 529 qualified expenses and have a calculation that determines whether or not any of the distribution is to be included in income. I've had clients in both situations but usually do a little planning ahead to prevent that. 3 Quote Link to comment Share on other sites More sharing options...
jasdlm Posted March 19, 2022 Author Report Share Posted March 19, 2022 Thank you! Circling back to 'uncheat' my cheated clients. 1 2 Quote Link to comment Share on other sites More sharing options...
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