AmyC
Expert Alumni

Get your taxes done using TurboTax

The 529 is not entered since it is used entirely and I would say it went to room and board rather than tuition. This leaves box 5 scholarship income to be used for tuition. The student can't claim an education credit when parents are claiming so the 109-T is not entered unless taxable scholarship income, which you don't have. The kiddie tax does not come into play since the scholarship is not taxable. His taxes should be very simple with no forms!

 

Your taxes would have only the 1098-T and the education credit. The IRS has a great brochure that explains how scholarships and tax credits interact.

 

IRS Publication 970, Tax Benefits for Education states:

If the entire 1099-Q went to qualified expenses, room and board, tuition, etc then you do not need to enter the form. Tuition paid for the first 3 months of the next year also qualify, see page 12, What Expenses Qualify, and page 52 for qualified distributions.

 

Page 45  repeats: Don't report tax-free distributions (including qualifying rollovers) on your tax return.

@VSN7 

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