Hello,
I have similar situation where my student dependent son has scholarship more than his tuition expenses. Please advise if I do it correctly or if I need doing differently to get some tax credit.
My son is full time student. On his from 1098-T, total scholarship $14,000, total tuition pay to his school $13000. He also made some income on W-2=$14,500.
I file separate income tax for him w/o reporting that amount listed on 1098-T because that extra $1000 of scholarship , of course he uses on his other school expense like room and board. The rest of R&B expenses are covered by my 529 fund which he is the beneficiary. He did not get any tax credit. He only got refund for the federal tax overpaid on his W2.
I file my income tax return as married join (with my husband), my son is claimed as dependent. I did not report any 529 fund distribution because total distribution = total spent on my son's R&B. I did not include any of my son's W2 wage nor his 1098-T information on my filing. My total AGI is $195K. We did not get any education tax credit nor AMOC.
Should I do our tax filings differently to get some advantage of tax credit on education?
