My daughter is currently enrolled in college. She received a full scholarship. For this semester she received $12,500. The school paid her tuition ($3000) and housing ($4500) and refund $5000 to her bank account for living expenses. I removed $12500 from her 529 to my bank account. 60% is earnings, the rest is contributions. I bought her a laptop for $1000. This is a requirement and should qualify for the American Opportunity Tax Credit (AOTC). Can someone check my tax prep and see if this sounds correct?
Unearned income on my daughters tax return: $9500 ($12.5k scholarship - $3k qualified edu expenses)
Unearned income on my tax return: $7500 (529 withdraw amount that is considered earnings. I won't owe a penalty because for the scholarship, but will owe taxes.)
AOTC: $1000 (laptop required education expense)
Unearned income on my daughters tax return: $9500 ($12.5k scholarship - $3k qualified edu expenses)
Unearned income on my tax return: $7500 (529 withdraw amount that is considered earnings. I won't owe a penalty because for the scholarship, but will owe taxes.)
AOTC: $1000 (laptop required education expense)
Statistics: Posted by moneym — Sat Sep 14, 2024 2:03 am — Replies 0 — Views 42