Thank you so much for the detailed explanation. Unfortunately I'm still a little confused.
1. I read somewhere that the MET can ONLY be applied to tuition. Is that not correct? You indicated we could flip the payment sources around so that the MET covers room and board and Scholarship will cover tuition. Please confirm.
2. The $500 that was "left over" after the MET and Scholarship was applied, was used partially for books and the remainder ($350) he deposited into his bank account. As I understand it, this would be considered income. He also had wages earned of $2,500 (not Household income he received a W2 from the employer). Since he does not meet the threshold of $12,550 or other items requiring him to file, he does NOT have to file a tax return. Can you please confirm if this is accurate?
3. I'm still REALLY confused about the 1099-Q and 1099-T. Since my son does not have to file, how does the 1099-Q get recorded? Do we have to include in our return (parent's return) along with the 1099-T? Reading through your previous email, it sounds like we have to record the the 1099-Q on our 1040 since technically not ALL the funds were covered by expenses. He had $350 that was deposited in his bank account. We would then use the 1099-T as the credit on our 1040. Is this correct?
Thank you again for your help!
