Q. Can I just put all of if (both 1099Qs, and 1098T) on my return even though some are in his name, since he is my dependent?
A. No. Since one of the 1099-Qs is in his name (he is the "recipient") it can only go on his return, if it goes anywhere.
You can just not report the 1099-Q(s), at all, if your student-beneficiary has sufficient educational expenses, including room & board (even if he lives at home) to cover the distribution. When the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax will enter nothing about the 1099-Q on the actual tax forms, so nothing about the 1099-Q is filed with the IRS. But, it will prepare a 1099-Q worksheet for your records. You would still have to do the math to see if there were enough expenses left over for you to claim the tuition credit. You also cannot count expenses that were paid by tax free scholarships. You cannot double dip!
On form 1099-Q, instructions to the recipient reads: "Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. You must determine the taxability of any distribution."
Unless your student has more than $11,450 of other income, it is better to report the $1500 scholarship as income rather than the earnings related to the extra $1,500 that came from the 529 Plan. This is because taxable scholarship is treated as earned income in calculating a student's standard deduction, while taxable 529 earnings are unearned income. A dependent's standard deduction is his earned income + $400 ($1150 minimum, $12,950 max).
