<p>I have $10K to add to my D’s 529 account. She’ll be stating college in the fall. The fall semester payment will be due sometime in August and the spring semester payment will be due in December. Our AGI is below the threshold to claim the AOC so I’m wondering how I should handle that $10K? The AOC only allows you to claim up to a $4Kdeduction/year and the money cannot come from a 529 account. So I’m wondering if I should just hold back $4K and put the rest into some other type of investment vehicle, either 529 or something else? Any suggestions or am I not ont he right track with this?</p>
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Yes you could hold back $4,000 to pay the dues in August & December, assuming your D’s qualified education expenses are exceeding $4,000. </p>