@BelknapPoint....Just want you to know how valuable you are.

Paying for College
1

Thanks so some of the discussions here, where you weigh in with fabulous advice, I sat down yesterday to figure whether it’s to my advantage to claim AOTC and just say the 529 withdrawals were not qualified withdrawals.

Looks like the 10% penalty on earnings might be waived (tax credit adjustment/scholarships received)

Federal tax on the earnings isn’t that much

My state, however, gives a tax deduction for 529 contributions, so the full amount of the nonqualified withdrawal is taxable, and my state has one of the top 10 highest income tax rates. (Yikes).

I still have questions, but at least thanks to the great advice here, I’ll go to my CPA with a handy list of them and a few spreadsheets!

Thanks again.

2

Aw, shucks. You are welcome; I’m glad I was helpful. There are many very knowledgeable folks here on CC who do a great job sharing what they know.** Also, it’s good that gathering information on CC was just a starting point for you, and you are following-up with a trusted professional.

**This is invaluable when it comes to posters who are experts in certain state or regional matters. sybbie719, I’m looking at you (New York City and state), among others.

3

@BelknapPoint FAFSA and Financial Aid MVP!

Thank you.

4

Belknap, Sybbie, Kelsmom, Thumper, Mom2… you guys rock.

5

@blossom too!

6

Hello? Anyone notice my posts?

;:wink:

7

Yes, @Madison85, @twoinanddone, @annoyingdad and @mom2collegekids have helped me here immensely!