The student is a qualifying child dependent of the taxpayer. The 1099-Q is in parent's name.
The parent funded $10,000 of room and board, but child paid $1,000 more and has receipts to support it. Do payments made by the child not parents count as qualified expenses? Would the entire $11,000 of their 529 withdrawal be tax-free & penalty-free or only the $10,000 paid by the child? I know if we were talking about the American Opportunity Credit, the amounts of qualifying expenses paid by a dependent child count for the parents, but am not sure here.
Please advise. Thank you,