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Education
@confusedrf - so here is what I understand from your comments
1) your 1098T has a net of $18,000 (box 1 - box 5)
2) your 1099Q has $11000 in box 1
a) assuming your child is your dependent, the 1098T goes on YOUR tax return. This is a requirement to take the AOTC credit.
b) assuming you are eligible for AOTC, you will get up to $2500 in a tax CREDIT on YOUR tax return - look at form 8863 for the math, but it uses up $4,000 of the $18,000 in 1098T net expenses for this to occur. That leaves $14,000 in expenses
b) Since the remaining expenses of $14,000 EXCEEDS the 1099Q Box 1 of $11,000, the Box 2 earnings are NOT taxable and there is nothing to put into your child's tax return (since their social security number is on the 1099Q)
easy!
‎February 28, 2020
11:25 AM