I agree with Opus 17, the income is in your son's name and goes on your son's return. After entering the 1099-MISC, you get a screen "Does on of these Uncommon Situations apply?" Check the box "this money was from my scholarship or fellowship". Then check NO to the question "did you perform a service to earn this money". TurboTax will put the $3000 on line 8 of Schedule 1 with the notation "Scholarship or fellowship from 1099-MISC". It does not go on Schedule C, self employment. He will owe a little tax on that income, because it is not "earned income".
Because the money was reported on a 1099-Misc, you should report it as taxable income on your son's return*. This then allows you to claim the tuition on your tax return, for the tuition credit, because that $3000 worth of tuition was not paid with "tax free scholarship".
*If you would come out better by treating this as tax free scholarship, on your son' return, there is a way to do that using a work around. Bur it risks an IRS inquiry because of the 1099-Misc.
