My son is a full time student (college Freshman) and can be claimed as our dependent (parents). He received a MET (529) from Michigan and Scholarship money. MET covered his tuition and Scholarship money covered his room and board and there was $500 left over that he received back in cash. 1) Is Scholarship money taxable since it was used for Room and Board, 2) Is the $500 taxable, 3) Does my son HAVE to fill out a 1040 since he received money or can we claim everything on our taxes, 4) School included full 2021-2022 tuition and scholarship on Form 1098-T - do we only record the amount for the Fall of 2021 or do we record the FULL amount for 2021-2022 since that is what is on the Form 1098-T? Taxes were so much easier last year...lol. Thank you!!!!
