<p>Child is freshman. </p>
<p>I paid fall semester bill with 529. Spring semester bill will come in November, due in Dec. Planning to pay at least 4,000 of that with savings. Hoping to get American Education Opportunity Tax Credit as our income is low (and I know I can’t use 529 payments for AEO credit.) </p>
<p>If the payment (from savings) and the classes (Spring semester) are in different years can we still qualify for any tax benefits for 2011 by paying that amount in December 2011?</p>
<p>Also, is it true that 529 must first be credited first to tuition before room and board, like Pell and other grants? AEO says only after crediting other payments can cash payments be credited towards AEO. If I have large payments from 529, can I still say some of 529 is towards on-campus housing, not tuition, even if they are all on same bill? Not sure I understand that correctly.</p>