his income goes on his tax return; your income goes on your tax return. Never the 'twain shall meet.
Since he is in college, it is to your advantage to claim him as a dependent. Follow the questions in TT as it will confirm that you can. Basically, as long as he is under 24 and a full time student and you provide over 50% of his support, you can continue to claim him.
The 1098T form creates the tax credits that you can take advantage of (your child cannot). As long as box 1 exceeds Box 5, the form goes on your tax return and your son doesn't have enough income to need to file a tax return (assuming there are no withholdings).
If Box 5 exceeds Box 1, then that is income to your son. But basically as long as that net number and the $1300 of income you mentioned is below $12,200 he has no need to file
