Hal_Al
Level 15

Education

Question 1: so it is safe for me not to report any of those forms in 2020 TT filing if I know they net out zero? I have detail file that list all expenses and back-up receipt.

A1. Yes, it safe for YOU to report nothing, about education, on your tax return.  Keep your back up receipts. 

 

Question 3: I haven't checked out other credit yet since I don't think I will be qualified cause my AGI is over $190K. Am I wrong?  

A3.  You are correct, you do not qualify for tuition credit or deduction, because of your income.

 

Question 4: how do I know if his scholarship is taxable? 

A4. Although room and board are qualified expenses for a 529 distribution, they are not qualified expenses for scholarships to be tax free (or for a tuition credit).  He has taxable scholarship because $14,000 + 4500 = $18,500  is more than his $11, 000 of qualified expenses (books and computers are also qualified expenses).

 

Question 2: he has some small income from working reported on his W2 less than $3000.  Even I claimed him on my joint-married filing, should I do another separate filing on 1040 EZ form for him? Will he get any benefit?

A2.  He has $3000 wages  + $7500  scholarship = $10,500 total reportable income. Since that is less than the $12,400 filing requirement*, he does not need to file.  He would get no benefit from doing so (unless there was withholding in box 2 of the W-2 to be refunded).  He is not eligible for a tuition credit or deduction, because he is a dependent (and other reasons).

 

*If he had other unearned income (interest, dividends, capital gains, unemployment) the filing threshold is lower.