Our income is too high to qualify for American opportunity tax credit so I am planning to let my college son to be independent to file his own tax to qualify for this credit. He have earned income of $17k from internship and has no scholarships. 1098-T only shows box 1. Is this the way to go to maximize tax advantage?
I withdrew from 529 plan to pay for his qualified college expenses and received 1099-Q with box 2 shows earning of $6000. So, I do not need to file this 1099-Q on our return?
Then how does IRS know that the fund is being used for qualied expenses? I assume I have to maintain proper documents?
