The 1099-Qs and 1098-T have my son's SSN. There is scholarship that he received which was not used for tution hence it is taxable (unearned income).
1098T Box 1 is $10,000 (College changed reporting so it shows only 1 semester), I had to enter the amount actually paid as $20,000 in Turbotax screen. Box 5 has $1,000
1st 1099-Q for State tution plan Box 1 $20,000, Box 2 $15,000 - this is paid directly by the State Tution plan to the College.
2nd 1099-Q is Coverdell ESA and Box 1 is $10,000, Box 2 is empty. This is for room and board which is a qualified expense for ESA.
My son also had scholarship on 1098-T for 2018 - a part of which was for 2019. So this is $1000 from Box 5 for 2019 plus $3,000 from last year's portion. Since this was not used for tution (as the state tution plan pays fully), this is taxable and TurboTax tell us to file a return for $4000 for my son.
So, Do I need to enter all the 1099-Q and 1098-T forms again in my son’s return (although it is entered in my joint return with my son as a dependent? and the American Opportunity Tax Credit is already claimed in it)
The Tution expense of $20,000 is offset by the $20,000 from the state tution plan and $10,000 from Coverdell ESA is offset by Room and Boading expenses. We had to make $4000 from expenses as taxable to get the $2500 American Opportunity tax credit.
