Help!
I'm getting turned around and twisted up trying to determine which forms go on my return and which go on my dependent's, while trying to maximize educational credit.
1099-Q = on dependent's?
1098-T = on my return?
Tuition = $58,578 + Room & Board = $15,086 for total of $73,664
Scholarship & grants = $60,200 Out of pocket = $13,464, (should this all be applied against room & board?) but $10,591.22 paid with 529 plan distribution (1099-Q)...by trial & error I maximize the AOC by inputting $4,600 as portion R&B paid with scholarship/grant - in which case this would be dependent's income?
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Dependent earned income = $4,635; entering the 1099-Q info on dependent's return increases tax liability by $835; not including any amount that needs to be added as additional income from above
