Need assistance entering 1098-t for my non-dependent son, already enterred 1099-Q

[siborg613]

I am filing my sons return but when click on the 1098-t section it doesn't even allow me to enter the information.  It just says "you cant claim an education tax break for 3 possible reasons.  
-I am not claiming him as a dependent
-He does have taxable income (about $3K0
-He has qualified education expenses

[DianeW777]

The key in your question is that your son is not your dependent.  Here is the reason you cannot utilize your son's education expense from his Form 1098-T in 2021.

Claiming someone as a dependent or allowing them to claim themselves is not a choice or an option. The rules for claiming a dependent can be reviewed at the link below.  Only the taxpayer who is eligible is allowed and even if the parent doesn't claim a child, the child is not allowed to claim themselves unless they qualify.

• Rules for claiming a dependent on your tax return

Who can claim the education credit?

There are additional rules for each credit, but you must meet all three of the following for either credit:

1. You, your dependent or a third party pays qualified education expenses for higher education.
2. An eligible student must be enrolled at an eligible educational institution.
3. The eligible student is yourself, your spouse or a dependent you list on your tax return.
   • Use the link above to review more information about the education credit.

Details about the Form 1099-Q for college savings can be viewed at this link: What is IRS Form 1099-Q?

• The distribution is claimed on the persons return whose social security number (SSN) is shown on the Form 1099-Q that should have been received.

• Where do I report Form 1099-Q?

• When the money goes directly from the Qualified Tuition Plan (QTP) to the school, the student is the "recipient".

  The 1099-Q gets reported on the recipient's return if the recipient's name & SSN are on the 1099-Q.

Once you compare your situation to the information you will be able to proceed with your tax return.  Please update here if you need further assistance.

[Hal_Al]

It's not clear what you are trying to do;  just balance the 1099-Q  against expenses or have the student claim a tuition credit.

With only $3K of income, he has (most likely) no tax liability to claim a tuition credit for.  There's a new urban myth among college students that says they can get a $1000 from the government just for filing a tax form. For most of them, they simply aren't eligible. A full time unmarried student, under age 24, even if you don't qualify as a dependent, is only eligible for the refundable portion of the American Opportunity Credit if he supports himself by working. You cannot be supporting yourself on parental support, 529 plans or student loans & grants. You usually must have actually paid tuition, not had it paid by scholarships & grants.  It is usually best if the parent claims that credit. 

You cannot claim a credit if you are, or can be, claimed as a dependent by someone else.

Reference: Line 7 instructions for form 8863. https://www.irs.gov/instructions/i8863

You can just not report the 1099-Q, at all, if your student-beneficiary has sufficient educational expenses, including room & board (even if he lives at home) to cover the distribution. When the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax will enter nothing about the 1099-Q on the actual tax forms. But, it will prepare a 1099-Q worksheet for your records. 

On form 1099-Q, instructions to the recipient reads: "Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. You must determine the taxability of any distribution."