Thank you for everyone’s advice.
I reported the excess scholarships/stipend on my son’s return.
After checking, it appears that the scholarship did pay for a portion of room and board.
My son’s tax return: Turbo Tax is reporting the excess scholarships and the stipend on line 8 - “Other income from Schedule 1, line 10”. Form 8615 is filled out and his taxable income (after standard deduction) is taxed at the parent’s tax rate (kiddie tax?) . Does that sound correct?
I’m still stuck on how to best claim the $1,013 out of pocket qualified expenses.
On the parent’s return we are claiming him as dependent.
How do we (parents) claim the out of pocket expenses of $1,013 in the attempt to get the American Opportunity credit (if possible) in turbo tax?
I entered the out of pocket educational expenses in Other Education Expenses.
I didn't enter my son’s 1098 T information. However, on another screen, Turbo tax asks for the scholarships that my son received ; “ Did xx receive a scholarship or grant in 2022? After I enter the net taxable scholarships ( 14815) in turbo tax , Turbo Tax indicates that we “ can’t claim an education tax break” (ie. American opportunity tax credit ) because the scholarships exceed the education expenses.
I've also tried by entering my son's 1098T information and the out of pocket educational expenses. Same results.
What am I doing wrong ?
If I claim the out of pocket qualified expenses on my son’s return he gets a small reduction in taxes owing.
Thanks for your help .
