Learning the ins and outs in a short time period

[Chris]

Hi I asked a question earlier and I think I now understand. I'm now trying to learn the various terms like what AOTC means and how it might apply to our situation. Also I'm not quiet understanding how a scholarship affects the 529 funds. My son got a grant and a scholarship and I'm trying to figure out what I have to worry about tax wise ect? We will not be using 529 funds yet. Is there any examples I can see to understand? Total tuition is around &13,500.00. He will also commute and we want to purchase him a commuter meal package. Can we use 529 funds for this? Thank you agsin

[dcandmc]

He will also commute and we want to purchase him a commuter meal package. Can we use 529 funds for this?

Yes.

See your other recent thread for a more thorough description of qualifying expenses and distributions. Also, I have found IRS pub 970 to be very helpful. See chapter 8 for information on 529 accounts. Chapter 2 covers the American Opportunity Credit (AOTC).

https://www.irs.gov/pub/irs-pdf/p970.pdf