My dependent son (full time college student, age < 18) received a 1098-T (~$23,000 for tuition payment). I used my 529-plan (with him as the beneficiary) to send $10,000 directly to his school, hence, he received a 1099-Q (for the $10,000 amount) in his name.
Is my son required to file a tax return, since he received a 1099-Q in his name? He also has received a W-2 for a part-time job (box 1: $1,900. boxes 2 and 17, Federal and state tax withheld are both $0). In the previous years, I normally withdraw funds from the 529-plan to pay for the tuition. Last year, I use the 529-plan to pay the school directly for a portion of his tuition.
For the 2023 tax year, he still qualities for the AOTC, and I would like to claim this AOTC credit in my tax return. My question is may I enter the 1099-Q information in my tax return even though the 1099-Q shows him as the recipient? Or should I skip the 1099-Q form totally? I think Turbo Tax will ask me if I received a 1099-Q form.
I also have a dependent daughter (full time college student, age < 24) received a 1098-T (~$11,000 for tuition payment). I withdraw $8,000 from my 529-plan (with her as the beneficiary) to help the tuition payment and I received a 1099-Q (for the $8,000 amount) in my name.
My daughter also has a part-time job and received a W-2 (box 1: ~$4,000. boxes 2 and 17, Federal and State withheld are both $0). Is she required to file a tax return? If so, may I still claim for her life-time learning education credit in my tax return? I’ve claimed her AOTC credit for four years already.
