Q. So on my joint-married filing, my college son is still be claimed as my dependent and I don't have to include his W2 income, correct?
A. Correct. A dependent's income (almost) never goes on the parent's tax return.
Q. I don't need to list 1098-T and 1099-Q either since I know total distribution were used toward qualified expenses under 529 plan. Correct?
A. Correct. And, you know you are not eligible for a tuition credit or deduction.
Q. In addition, HE can do a separate filing to list his W2 (less than $3000) and report his 1098-T to document that he has $3K taxable scholarship ($14K scholarship, less $11K tuition).
A. Yes. There is no more form 1040EZ (or 1040A). Everybody uses 1040.
Q. We never get any document of the second scholarship $4500, should we include in his filing?
A. Yes, document or not, it's still income. You can just enter $18,500 in box 1 of the 1098-T screen for simplicity.
Q. The balance of $3000 were paid by 529 plan under my filing, no need to mention on his filing right?
A. Right. You (and he) don't need to account for what you used the $3K difference for. He just needs to call it taxable scholarship.
Q. Since his wage and taxable scholarship $10,500 (total) is less than filing threshold, then he might get refund for taxes withdraw on his W2. Correct?
A. There's no "might". If there's an amount in box 2 of the W-2, that will be refunded. If there's nothing in box 2, don't bother to file. He cannot get the box 4 or box 6 amounts refunded. If there's an amount in box 17, he might get that refunded depending on what your state's tax structure is. Most, but not all, states follow federal.
