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April 10, 2021
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Is AOTC allowed when paid with Coverdell funds?

  • April 10, 2021
  • 1 reply
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Can parents claim AOTC when paid with Coverdell funds as long as tuition amount taxed on child's return?

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Best answer by TaxGuyBill

Yes, you can apply the Coverdell withdrawals to non-tuition (potentially making part of it taxable, but be sure to apply Coverdell to housing expenses), thereby allowing some tuition to be used for the American Opportunity Credit.

1 reply

April 10, 2021

Yes, you can apply the Coverdell withdrawals to non-tuition (potentially making part of it taxable, but be sure to apply Coverdell to housing expenses), thereby allowing some tuition to be used for the American Opportunity Credit.