Wednesday, December 14, 2011

Can I claim the new American Opportunity Tax Credit if I pay the first $4000 of tuition from a taxable account?

For example: If the total tuition bill was $10,000 and I paid $4000 from my checking account and $6000 from my 529 college saving plan, would I still be eligible to take the $2500 American Opportunity tax credit? I don't know if using ANY 529 funds would cancel any tax credit.

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