Full time student dependent with no income, received money from an Ohio 529 plan for tuition. Does he need to file his own tax return?

[LinaJ2018 · Accepted solution]

If he does not meet the filing requirements, he is not required to file.  With the distribution from a 529 plan, if it is used to pay for his tuition, there should not be any taxable income.  I would enter the 1099-Q ( if he receives one) in the program to verify. 

Please see  

2019 filing requirements, Chart B

[gdco]

Thank you, he has only received a 1098 T.

[LinaJ2018]

I would suggest you enter the 1098-T info on his own return, he might be entitled to a refund. Start entering his information, if no refund indicated, do not file.  Please see information below. If you are going to claim him on your return, you would get the education credit if qualifies, that works too.

[gdco]

I will do that, I do appreciate your help!

[LinaJ2018]

You are welcome!

[LinaJ2018]

Without a job and income, he might still be able to claim a partial portion of the American Opportunity Tax Credit, but no Lifetime Learning Credit or Tuition Fees Deductions.

The American Opportunity Credit provides up to $2,500 for paying for an undergraduate student's tuition. The credit is partially refundable, meaning that you might be able to get 40 percent of the tax credit even if you have no tax liability. The other 60 percent of the credit can only be used to offset your tax liability, therefore, if you did not work and have no tax liability, you will not get this portion of the credit. 

However, for Lifetime Learning Credit, the credit is not refundable at all, which means that you can only use it to reduce your tax liability. If you don't work and don't have any other taxable income, you will not be able to use the credit.