My son received combined scholarship (Box 5) that exceeds his qualified tuition & expenses listed in Box 1 of the 1098-T. We are claiming him as a dependent and I entered all of the 1098-T information as well as his additional qualified expenses (books, etc) on our return. It is allowing us to take the AOTC for the additional qualified expenses (books, etc.) but Turbo Tax came back saying $1,812 of the scholarship is considered taxable income and must be reported on my son's tax return. He is filing a return to get a refund from his part time job because they took taxes our of his paycheck. However, his earned income from the job plus the $1,812 taxable scholarship amount will not exceed the $6,300 so it won't affect his return. We are simply filing a return for him to get the refund. In this situation, do I still need to enter all of the 1098-T information on his return. I definitely don't want to remove it from our return since we will get a small AOTC credit ($1,300) but I also did not want to leave it off of his since TT said it needed to be included on his return. On his return indicated that he is being claimed as a dependent on our return so it won't let him take an education credits but I just want to make sure I am handling this the right way. I didn't know if it entering all the 1098-T information on both returns was the answer or if I should only enter the taxable portion of the scholarship somewhere else on his return and leave the 1098-T information off? It is so confusing....thanks for any help!
