Education
- If you plan on claiming him as your qualifying child which can be done based on given facts, you would need to enter the 1098T on your return. If your son is going to do his own taxes, he can claim the 1098t on his taxes. remember he still gets the standard deduction of 12,950. The additional scholarship money will turn taxable in excess of tuition. Scholarship money is not used in calculation of own support.
- If it is a qualifying educational expense(s) needed for the child's education courses and you plan on claiming him yes, if not he can claim the educational expenses with the 1098T on his return. The only way for you to claim the expenses is if you claim him and enter his 1098T on your tax return.
- Yes, you can still claim him if he is 19, full time student, living at home all year or away for school, and you provide more than half of their support; you can claim him until the year he turn 24 and is still a full time student. But it may be more beneficial in this scenario for him to do his own taxes, because of the taxable scholarship money and his standard deduction of 12,950 will wipe most of it, and the credit worth up to 2,500 will help him if he files and follows the instructions below. He will also need to say he can be claimed by another but they will not be claiming him in Personal section interview.
- For Form 8615 below is an image I do not see check box "if the parent elects to report income on their return". Here are the Instructions for Form 8615
https://www.irs.gov/pub/irs-utl/Pell%20AOTC%204%20pager.pdf
Doble check, you entered Box 1 and Box 5 correctly.
If Box 5 is greater than Box 1 or equal to read the article below.
Your son or you would have to claim that the Pell Grant/Scholarship, were used to pay for Room and Board in the education expense section (if this is the case), or other eligible equipment and computer, or books purchase necessary for the training program. After entering your 1098-T which most taxpayers need a place to live and have living expenses as outlined in the article below, or other qualifying educational expenses, for example, a computer or supplies and books. Even though it may say room and board isn't qualified that is why it turns taxable income, but gives you the credit from the AOTC American Opportunity Tax Credit or LLC Lifetime Learning Credit, if applicable. Please read the article above linked from irs.gov.
Only enter the amount of income indicated after entering your room and board expenses. It'll say this is taxable income in the amount of xxxx.xx. In your scenario $3,000 would have to be filed as Other income =Personal Income>Misc Income, 1099-a, 1099-C>Other Reportable Income>Select Yes>Description is scholarship or grant> amount is up to 3,000 in the example case.
