My dependent son is a high-school (homeschooled) senior, and he took 2 dual-enrollment courses at our local community college. The cost of the courses was fully covered under Tennessee's Dual Enrollment Grant, which is funded by the Tennessee Lottery. He was sent a 1098-T that shows the tuition amount in Box 2 (qualified tuition/expenses billed) and Box 5 (scholarships/grants). Per the 1098-T, he was considered at least a half-time student.
Because the grant fully covered tuition, do I even need to bother with the 1098-T?
I entered it on his return (he has a small 2-day/week job, less than 20 hours/week), but TurboTax says that it doesn't apply since I claim him as a dependent on my return. I entered it on my return, and depending on how I answer the questions, TurboTax says that the tuition is not a qualified expense and that my son needs to claim the grant as income.
I think the hang up here is the distinction between whether or not he is taking the courses in pursuit of a degree. Of course he's not since he is a high school student, but the courses will apply toward a degree at the university he plans to attend in the fall. So should I answer yes?
The long and short of it is this: I would rather just ignore the 1098-T if I don't need to report the scholarship as income for him. That way I avoid all the weirdness of whether this is classified as American Opportunity Credit or Lifetime Learning Credit and how these 2 courses may impact claiming those credits in the future. He has fortunately received enough scholarship for college that my tax situation this year is going to end up being more complicated than I'm comfortable with.
Thanks for your help!
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You may ignore the 1098-T, since you know it has no affect on either your return or your son's.
The 1098-T is only any
informational document. The numbers on it are not required to be entered onto
your tax return.
You may ignore the 1098-T, since you know it has no affect on either your return or your son's.
The 1098-T is only any
informational document. The numbers on it are not required to be entered onto
your tax return.
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