Dependent child earned a bit under $13K as W2 income in year 2023. Also, dependent child received 1098-T from college which included scholarship/grants of around $7K, with payments to the school for half that amount ($3.5K unearned income). There were no out-of-pocket school expenses.
Dependent child will file taxes for earned income but who should enter 1098-T, (a) the parent who claims dependent child, or (b) the child who will file taxes, or (c) both, parent and child???
When 1098-T is entered by parent, it makes no difference to the return/refund amount. When child enters 1098-T, it reduces child refund by $300.
By the way, ALL ITEMS BELOW ARE TRUE FOR THE STUDENT (According to IRS Publication 970 at http://www.irs.gov/pub/irs-pdf/p970.pdf)
- Is under the age of 24 on Dec 31 of the tax year and:
- Is enrolled in an undergraduate program at an accredited institution and:
- Is enrolled as at least a half time student for one academic semester that begins during the tax year, (each institution has their own definition of a half time student) and:
- the student provides less that 50% of the student's support (scholarships/grants received by the student do not count as the student providing their own support).
