@FLmom wrote:
Questions:
1. Is including the 1098-T on both returns a valid approach?
2. Am I really allowed to get refunded for the $1,740 out-of-pocket qualified expenses under the American Opportunity Credit even if my son has unearned income to report from the scholarships/grants received?
3. If Turbotax states that my son has no tax due after reporting the 1098-T and 8615, does he still need to file? - I assume yes because his unearned income exceeds the $1,100 threshold but I am not sure.
Only the taxpayer claiming the dependent can claim the educational credits, However, if the 1098-T box 5 is more then the box 1 tuition then that becomes taxable income to the received of the scholarship, the student so the 1098-T should also go on the students own tax return. That income should show on the students 1040 form line 1 with "SCH" next to it.
Since that is unearned income and if all the child's unearned income exceeds $2,200 then that will trigger the 8615 "Kiddie tax" form.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
