Q. I could remove the 1099-Q from my TT forms, and thus not have it count as income for me?
A. Correct
Q. - You also mention that my son needs to re-file, listing that he CAN be a dependent. If I choose to not claim him as a dependent, does he still need to do this?
A. Technically, yes. But as long as he doesn't try to cliam something he's not entitled to (the most common being the refundable portion of the American Opportunity Credit), his taxes will come out the same either way
