Client took two early distributions of $12700 (Code 1) and $194 (Code 1B) from a 403b to pay for son's tuition 2019-20 school year. They are paying $1580/mo (10 month payment arrangement) starting in 8/2019. The 1098T from the University they shows $26978 in Box 1, and $14750 in box 5.  1) What amount should be shown for education credit - actual amount they paid toward tuition (5x 1580= 7900) or the full amount of $15800 or Box 1 - Box 5 (26978-14750=12228? 2) Since the distribution from 503b was for tuition (federal and state taxes were withheld), is the distribution fully taxable as shown in box 2a? Thanks in advance--this is my first time encountering this discrepancy.  

I would like to get further opinions: In terms of travel expenses for a Schedule C--can a client claim the CONUS per diem amount for lodging for a trip if not a government employee? Or does it have to be actual expenses at a hotel or BnB? Or 0 if staying at a friend's home or reimbursed? I know that meal per diems can be included at the 50% rate. The client (in the performing arts), has heard differing opinions from different sources!  Thanks in advance.