Q Did I do son's return correctly? The $10,550 showed up on Schedule 1 line 8r, and summed with his Door Dash business income and carried to Form 1040 line 8, and his Federal Tax Due did not change.
A. Yes.
Q. I'm wondering if I made a mistake allocating any of this to my son at all as you did not know the circumstances of my state income tax.
A. No. He either pays state tax on the scholarship or you pay more state tax on the distribution. Yes, your state tax will be less. I haven't done the math, but what the family saves in federal taxes should be much more than the increase in state tax.
Q. students name entry box, LEFT EMPTY
A. No, enter the student's name, even though he's you dependent (it probably won't matter)
Q. My Federal Tax Due and IL Tax did increase, so the amount was taxed.
A. Verify the amount on line 8z of Schedule 1.
Q. When doing all the math you showed me for calculating the assignment of QEE between parent and child, do you use the dependent child's line 9 or line 11 from his 1040 for the child's income?
A. Line 11. Student-dependents don't usually have adjustments, So, that's never come up before. I now see that is applicable in your case.
