The student is a dependent. If the forms go on the parent's return, how do we put the taxable scholarship income on the student's return? I don't think there's any education credit to be had as I believe we make too much to qualify. For what it's worth, the student had a decent summer job and even though we are still providing the majority of the support, they have to file.
Regarding the 529, they withdrew the balance which was less than the tuition charges last year after learning they had the scholarship. So while taxable, there shouldn't be the penalty tax. Correct?
Thank you for your patience and help.
