To stretch out the 529 through 4 years, we only used the 529 for tuition (paid by 529 admin directly to the university) and paid for dorm housing and other expenses from our checking account directly to the university. Now it looks like we could qualify for the American Opportunity Credit. Did we create a problem? Must we trace where the "actual" 529 funds went or just have withdrawn from 529 the amount not to exceed the housing expenses?
529 paid $15k of tuition (full tuition)
Ckg acct paid $10k (within COA amt) of housing
If I claim $4k of tuition for AO Credit, can I attribute my 529 payment $11k to tuition & $4k to housing, even though the actual funds from 529 were all paid for tuition only?