Q. Ok so if he has17765.00 in income via his W2 and the 1098-T had 1555.00 in box 1 and $4448 in box 5 and nothing in any other box, and I have already filed and received my return, what is the correct course of action? Should only he file it, do I "NEED TO" amend mine or should we do nothing?
A. Only he should file to report the scholarship income and the kiddie tax form 8615.
You don't "NEED TO" file an amended return. But you have the option to file an amended return to claim the $1555 of tuition (plus any "course materials") for the tuition credit. The American Opportunity credit (AOC) is 100% of the first $2000 of tuition and qualified expenses and 25% of the next $2000. So, you're looking at a possible $1555+, in hand. If you do, then he will report the full $4448 as taxable income, rater than just the $2893 difference between boxes 1 & 5. Only half time (or more) undergrads are eligible for the AOC.
