hi. I have two sons in college. Our oldest son receives a scholarship for tuition as a dependent of a university employee. Is this scholarship taxable? Also, he receives a 1099Q distribution to pay his off campus apartment and food...is this distribution claimed on our tax return as he is our dependent and does not have to file a tax return based on his income. He does however file a return only to receive a refund of his federal and state taxes.
Our youngest son receives a scholarship from his school which covers tuition, room and board. We cover student fees. On the 1098T, the school only reports the portion of the scholarship for qualified expenses. Are we supposed to report the remainder of the scholarship although it isn't mentioned anywhere? Also, we use a 529 distribution to pay his expenses and this year his distribution was used to calculate an education credit by turbo tax, should we do anything else?
