<p>Finally it clicked! Thank you so so much for your patience. I actually understand it all well enough to finish the form and even explain it to DH. It’s a miracle!</p>
<p>Now this semester, I had to use 529 funds so next year this time will be even worse, won’t it? </p>
<p>You are really a sweetheart for walking me through this step by step and I hope you enjoyed the doughnut! Thanks again.</p>
<p>Oh, I forgot to find out what software is best to use? Thanks again!</p>
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<p>Hopefully you mean the spring 2014 semester or this entire thread is null and void. I also hope you took the distribution in 2014. </p>
<p>QEE for tax-free 529 distributions includes room and board for 1/2 time or greater students. But if you paid all of your out of pocket costs from 529 distributions you won’t have QEE for the AOC unless you also declare the 529 earnings as taxable income to your son. And that is more complicated than making additional scholarships/grants taxable.</p>