<p>I know there were several other threads about 529s and tax implications. I also tried to read pub 970, but everything is going over my head right now. So, I will throw the numbers out there. Hopefully someone will be able to tell me which would be most beneficial in our case.</p>
<p>S's CoA:</p>
<p>Tuition: 36,000
Room & Board: 9,000</p>
<h2>Books & Misc: 3,000</h2>
<p>Total CoA: 48,000</p>
<p>Grants & Scholarships: 34,000
Perkins & Sub Loan: 4,000
UnSub loan: 2,000
Work study: 3,000</p>
<p>That leaves an unmet need of $5,000, which I plan on withdrawing from 529. If S finds a campus job, work-study can be used for books & misc. In case work-study doesn't work out, I will pay for books/misc myself. What I don't know is, should I use this $5,000 (from 529) towards tuition or room and board? Or doesn't it matter? If I paid anything towards books/misc, do I get any kind of tax credit for that? What is the best approach here? We are in a low tax bracket. Also would it be wise to not avail the unsub loan for now and withdraw that much more from 529? Please tell me what you think.</p>