Sorry for the late response.
I am not claiming my student as a dependent for a couple of reasons:
1. It will not help for education credit since our MAGI is >180,000
2. He worked in a state with no income tax for the summer, yet has to pay NYS taxes on that income. His liability will be greatly reduced if I do not claim him.
So, should I still be able to do the workaround? I can play with numbers to see how much of the Box 1 I can claim as tuition/expenses and see if I can get things to look better for him (if it is allowed).
I also have a son in Grad school whose tuition and scholarship money (Box 1 and Box 5) are nearly the same. Can I do the same thing for him (determine how much of Box 1 can be used for tuition and the rest income). It may lower his tax liability if it works!
Thanks again!!
