Q. My son will file independently. Can he claim 1098-T and I (parent) claim 1099-Q because I am listed as a recipient.
A. Yes.
What you cannot do is use the same expenses to claim your respective tax breaks. What ever expenses he uses to claim the tuition credit and keep his scholarships tax free, cannot be used by you to claim an earnings exclusion on the 529 distribution. No double dipping!
Provide the following info for more specific help:
- Box 1 of the 1098-T
- box 5 of the 1098-T
- Any other scholarships not shown in box 5
- Does box 5 include any of the 529/ESA plan payments (it should not)
- Is any of the Scholarship restricted; i.e. it must be used for tuition
- Box 1 of the 1099-Q
- Box 2 of the 1098-Q
- Room & board paid. If student lives off campus, what is school's R&B charge. If the student lives at home, only the school's board charge for on campus students.
- Other qualified expenses not included in box 1 of the 1098-T, e.g. books & computers
- How much taxable income does the student have, from what sources
- Is he trying to claim the tuition credit (is he eligible)?
- Is the student an undergrad or grad student?
- How old is the student
- Is he a full time student
- How does he qualify to file independent
