The forms are entered on the parent's return so the program can do the math.
Since you are not taking an education credit, and if the forms are in his name, it would work out, in your case, to enter the forms on his return. he should not get a credit, since he is selecting that someone else can claim him and the program should tax part of the earnings on the distribution.
Sorry, that was what you were going to do in the first place, but it wouldn't have worked had you claimed a credit.
If the student is studying accounting, maybe they can figure the taxable earnings on the distribution:
Taxable earnings. Use the following steps to figure the taxable part.
1.
Multiply the total distributed earnings shown on Form 1099-Q, box 2, by a fraction. The numerator (top part) is the adjusted qualified education expenses paid during the year and the denominator (bottom part) is the total amount distributed during the year.
2.
Subtract the amount figured in (1) from the total distributed earnings. The result is the amount the beneficiary must include in income. Report it on Schedule 1 (Form 1040) or Form 1040NR, line 21.
Example 1. In 2010, Sara Clarke's parents opened a savings account for her with a QTP maintained by their state government. Over the years they contributed $18,000 to the account. The total balance in the account was $27,000 on the date the distribution was made. In the summer of 2018, Sara enrolled in college and had $8,300 of qualified education expenses for the rest of the year. She paid her college expenses from the following sources.
Gift from parents
$1,600
Partial tuition scholarship (tax free)
3,100
QTP distribution
5,300
Before Sara can determine the taxable part of her QTP distribution, she must reduce her total qualified education expenses by any tax-free educational assistance.
Total qualified education expenses
$8,300
Minus: Tax-free educational assistance
? 3,100
Equals: Adjusted qualified education expenses (AQEE)
$5,200 Since the remaining expenses ($5,200) are less than the QTP distribution, part of the earnings will be taxable.
Sara's Form 1099-Q shows that $950 of the QTP distribution is earnings. Sara figures the taxable part of the distributed earnings as follows.
1.
$950 (earnings)
×
$5,200 AQEE
$5,300 distribution= $932 (tax-free earnings)
2.
$950 (earnings)?$932 (tax-free earnings)= $18 (taxable earnings)
Sara must include $18 in income (Schedule 1 (Form 1040), line 21) as distributed QTP earnings not used for adjusted qualified education expenses.
IRS PUB 970 explains it very well
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