I have been consumed by a family crisis and have let many things slip, including taxes, and I am now trying to help my son file his 2022 tax return.
Here are some facts that may be relevant...
- He is still my dependent and I am currently planning to claim him as such.
- For FAFSA purposes, he is Independent. (I do not understand why, but this was very beneficial this year and last year.)
- In 2022, he earned $3,900, but paid no federal income or social security tax.
- 100% of his 529 distributions were paid to his college (~$6,800) or reimbursed him (~$5,800) for QEE according to the 529 rules as I understand them.
Below are my questions. I am sure there are other considerations of which I am not even aware... Any help would be greatly appreciated!
- Since 100% of his 529 distributions were used to pay for 529 QEE, can he not report his 1099-Q?
- Is there any reason why he would want to report his 1099-Q?
- When entering the second 1098-T , can he reduce the amount he reports in Box 1 on TurboTax by $4,000 and can I assume those $4,000 of IRS QEE?
Thank you in advanced for any assistance offered.
Sincerely,
The Blind Eagle
