Expenses that Do Not Qualify
Even if you pay the following expenses to enroll or attend the school, the following are not qualified education expenses:
Room and board
Insurance
Medical expenses (including student health fees)
Transportation
Similar personal, living or family expenses
So my point is the student’s actual nonqualified expenses (what about a car, vacations, clothing) could certainly exceed the estimate in the COA (billcsho’s post above) leaving plenty of room to move scholarships to taxable in order to get AOTC. No where does it say the student’s actual nonqualified expenses are limited by amounts in the COA.