@TaxGuyBill I I am in a very similar position with my son but he also has a 529 plan . His tuition was $4700, 529 distribution was $4,500, scholarships $14,000, earned income from job $8000. His scholarships paid for all of his room and board plus even other non-qualified expenses. last year I claimed him and took the education credit based on the 529 plan since I am the account owner and he only had one semester. With the new kiddie tax rates this year he would have to pay three times as much in taxes.
Are there any options this year to lower his unearned income portion? His scholarships didn’t pay for qualified expenses so can any of it be moved to taxable income ?
If scholarships are not included in the support test then he might be able to claim himself. If he does will that change anything on the kiddir tax amounts?
Thank you
