Yes, that is correct. Please read the information below.
If the scholarships/grants exceed the qualified education expenses, then:
- your son will report the 1098-T and all other education expenses, scholarships/grants on his tax return.
- he may have to pay taxes on the amount of scholarships/grants that are not used for qualified education expenses.
- however, if your son's earned income, when added to the excess scholarships/grants does NOT exceed his standard deduction, then he doesn’t even need to file a tax return, and nothing has to be reported. See Do I need to file my own taxes if I'm a dependent?
Additional information: Are my scholarships, fellowships, or grants taxable? and Why is my scholarship taxable?
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