My son received $24K in scholarships. 1098-T shows tuition of $17401.00. Total expenses were $23977.16 ($6577.00 was room and board). I know the room and board amount is taxable. I withdrew $23444.58 from the 529 (allowed to withdraw up to scholarships amounts without penalty).
His work income was $3429.00 and on the 1040 it is also showing additional entry of SCH at $7099.00 making the total wages $10528.00. Then he has interest and dividends of $563.00.
Form 1040 is showing additional income from schedule 1, line19 of $10529.00 (from the 529). Then TurboTax is asking for our income on form 8615, line 6 (my son is filing his own return, but is a dependent on ours). When that amount is entered his taxable amounts are being billed at our tax rate. Since this is all from his scholarships and 529 (he was the beneficiary) is there anyway around that?
