Thinking further on 2022..adding to my confusion is that we have two 1099-Q's...1) from a state 529 for $1500 issued in my name & SSN and 2) from a Coverdale for $30,000 issued in my son's name & SSN. Total qualified expenses = $47,500 ($31,500 withdrawals from these two accounts and a $16,000 scholarship).
Does that mean 1) on my return, I report the $1500 1099-Q and list $5500 of the tuition expenses to cover the $1500 from the State 529 and the $4000 credit (even though with our income it looks like we may get $1000) and 2) on my son's return, list $42,000 in remaining qualified expenses (so as not to double dip) and then have $4,000 of the scholarship (or withdrawals) be taxed as income? He is going to have to file 3 different state returns, so I not sure if this will be a complication.
Lastly, I'm considering seeing if it is more advantageous to not treat him as a dependent - his income is significantly lower so should be able to take a full AOC. If I did that, given I still have a 1099-Q in my name for $1500, I assume I should take that much of the qualified expenses and leave him the rest?
