Q. -Planning to let my son file independently so he can qualify for AOC, is this the right move for us?
A. Yes, and no. As explained by @ColeenD3 and at your other post
(https://ttlc.intuit.com/community/college-education/discussion/re-the-parent-of-the-dependent-files-... ), filing independently is not optional. But, you can forgo claiming him, but he still can't claim himself or the refundable portion of the AOC. But then he can claim the non refundable credit (up to his tax liability)
Q. We will not include 1099-Q in our tax return since all distribution being used for qualifying expenses. Is this correct?
A. Yes, Details at your other post.
-Q. My son also doesn't need to include 1099-Q since he is not the recipient on the the form. Is this correct?
A. Yes.
Q. For him to file a SEPARATE return, checking the box that he can be claimed as a dependent (not "independently"), he will report 1098-T and his tax questions answers are .....Please advise if these are correct.
--Yes, to someone can claim him. CORRECT
--No, to someone will not claim him. CORRECT, answer no one will claim him in 2021
--he paid for over half of his support, should he answer YES or NO? Answer No. It does matter. But you may not be asked that
If he paid for more than half his support (see the work sheet at your other post), then he can file independently (and the answers would be different). But, more than half his support must still come from earned income (check the wording on the question carefully) for him to qualify for the refundable portion ($1000) of the AOC*, even as an independent. Reference: Line 7 instructions for form 8863. https://www.irs.gov/instructions/i8863
