My 20 year old son is a full time student in Alabama but his permanent address is in Louisiana and he is claimed as a dependent by me. He receives a scholarship that covers tuition and housing, so his grandfather pays the fees, books, and the meal plan out of a 529 plan. The school has not issued the 1098-T, but when I add up the non-qualified expenses, the taxable portion of the scholarship would be $3949. Who's return should include the scholarship income and expenses -- mine, his, or grandparents? If the student is supposed to claim it, does he file an Alabama return or a Louisiana return or both?
Thanks to COVID, his only other income for 2020 is a $528 W2 from the movie theater here in our home state and about $600 in dividends.
