Son is a graduate assistant and employed by the University as asst football coach. W2: wages $46,000; federal tax w/h $2,100; SS wages $11,700. I knew right away they didn't take out enough fed withholding, even though he claimed 0 on his W4. Why such a discrepancy on wages and SS wages? No clue! 1098-T lines 1 and 5 are: $7,700. No other boxes. He owes almost $2,000 to the IRS!!! The $7,700 is all paid for by the University, who is his employer and as a grad asst must take Master's classes at least half time. The software questions go like this: "What portion of the $7,700 is employer tuition assistance?" "Now tell us if you're including any of your REMAINING grants/scholarships in income?" "Why you might want to do this." In the past, I was told to add $4,000 to income, as it was the maximum to claim the LLC and it did lower the tax burden. I'm still confused! Is $4,000 the amount I add to his income? Please help me understand and tell me where to put the correct figures! Thanks.
