Hello @Hal_Al , firstly thanks for your reply and for all this great information. Great learning for me an I truly appreciate the help.
Let me answer your questions first:
- Are you the student or parent. Parent
- Is the student the parent's dependent. Yes, she is a dependent on my taxes.
- What is the student's age as of 12-31-22. 20 years old
- Box 1 of the 1098-T. $13,990
- box 5 of the 1098-T. $4000
- Any other scholarships not shown in box 5. None
- Does box 5 include any of the 529/ESA plan payments (it should not). No it does not.
- Is any of the Scholarship restricted; i.e. it must be used for tuition. I dont believe it is restricted. From the college scholarship T&C it states: "Disbursement of Scholarship: One-third of your yearly scholarship amount will be disbursed to your student billing account each term." Each term the billing includes: tuition, room and board, other fees.
- Box 1 of the 1099-Q: $19,806
- Box 2 of the 1099-Q: $6,639
- Who’s name and SS# are on the 1099-Q, parent or student (who’s the “recipient”)? Student, my daughter
- Room & board paid. Yes, 2022 was $17,291
- Other qualified expenses not included in box 1 of the 1098-T, e.g. books & computers. No, other than the room and board above.
- How much taxable income does the student have, from what sources. Two part time jobs, $5,600 in 2022
- Are you trying to claim the tuition credit (are you eligible, there is an income limit)? TurboTax said I (parent) was not eligible due to my earnings.
- Is the student an undergrad or grad student? Undergrad.
The students college expenses $31,281 were greater than her scholarship $4,000 and 529 withdrawal $19,806. Given that, I assumed here taxes would be based solely on her job income. However, when including the college, her taxes increase and her refund decreases.
Thanks again for your help.
