<p>Yes, as MisterK posted, the credit is included as untaxed income that does seem to be the case. The verification handbook contains the following:
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Not necessarily, though in this case they were correct. We have worked with 2 separate FA offices. At my daughter’s school they are excellent, extremely efficient and know what they are doing. At my son’s school they were very slow and inefficient and were always making mistakes with aid. They were so frustrating to deal with as well - I remember trying to get the COA from them so I could determine what we could withdraw from his 529 account without tax penalties, they didn’t seem to understand what I was even asking for. I finally had to email the head of the dept to get the information I needed.</p>