# Pay $4,000 of Tuition Outside Your 529 to Claim the Full $2,500 Tax Credit

- Source: Money Crashers
- Published: 2026-10-18T11:30:00+00:00
- Category: Markets
- Original: https://www.moneycrashers.com/american-opportunity-credit-529/
- Canonical: https://groundlevelnews.com/story/pay-4-000-of-tuition-outside-your-529-to-claim-the-full-2-500-tax-cred-f833d6/

Say freshman year costs $20,000 for tuition, fees, books, and a dorm room, and a family pays all of it from its 529. Keeping that withdrawal tax-free uses up every qualifying dollar, so nothing is left for the credit and... Source

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