Hal_Al
Level 15

Education

Q. The student  made about $10k of his own money in 2023.

A. I assume that's from working so, it's earned income. That means he can declared the $2875 scholarship taxable and still pay no tax. He gets a (up to) $13,850 standard deduction.

 

Q. Our married filed jointly income is $176k.

A. Your in the phase out range (160K to 180K), so you're only gonna get 20% (4000/20,000) of the AOTC.

 

Q. Since the parent SS is listed on the 1099Q, I don't think I can put on my son's return.  

A. Any taxable portion of the 1099-Q goes on your tax return. Only the taxable scholarship goes on his return. 

 

Q. He lives off-campus and not at home with us, should I still try to research the R&B?  

A. Yes, that's even better.  The school has a separate (larger) allowance for cost of attendance  for off campus living. Basically, you can use what on campus students pay. 

 

Q. Should I just leave the $6383 default that TT put in the larger education credit, or drop down to the $4000?

A. Drop to $4000. We may (probably) even drop to $2000*, because of the phase out. I won't know, for sure,  until I have the R&B number. 

 

Is box 2 of the 1099-Q  $3130 or $6387?  You show 2 different numbers in different replies. The other is probably box 3. 

 

*The AOTC is 100% of the fist $2000 and 25% of the next $2000.  In your case that's only a $100 difference. It may be better to have less 529 earnings taxable.