I claimed my son as a dependent for my tax return. I received my son's 1098-T from his school, my son also has his own W-2 form to be filed for his own tax return.
My question is - the amount of scholarships & grants is bigger than the amount of payments received for qualified tuition and related expenses on my son's 1098-T, I was advised when I claimed my son as a dependent on my tax return, and I file my son's 1098-T on my tax return, my son don't need to file his 1098-T on his own tax return. Is it correct ? I tried to use H&R Block to file my son's tax return, when I selected my son as a dependent, 1098-T is not allowed to be filed, it on credits portion indicates "1098-T Tuition and expenses for college and other higher education is 0", it shows SORRY YOU CAN'T CLAIM YOUR TUITION after pressing the revisit button since someone is claiming you as a dependent, you can't claim a tuition tax break. Don't worry – we'll continue to look for other credits and deductions as we work through the rest of your return.
I also checked many websites including IRS, they all said excess scholarships & grants are taxable, the student as a dependent still needs to count the excess scholarship & grants as income filed together with W-2 Form on the tax return. Both concepts are totally discrepant
Could anyone explain the details for this BIG issue ? Thanks !
