Education

Thanks again for another helpful response - you're very kind!

 

It occurred to me that since it is a choice of whether to make the scholarship taxable or not, does it really matter if I try to maneuver out-of-pocket funds into DS' account to justify the AOTC, or if I choose to make the SCH taxable the moment he receives it, and it is immediately as good as my own OOP money?

 

Seems silly to me now, but I suppose I am a little confused because my son receives the scholarship money in his account, and receives the 1099-T, and pays taxable scholarship on his return - but I claim AOTC based on that scholarship being treated as taxable...  I guess since I declare him as a dependent, his taxable scholarship is treated like my out-of-pocket money?