Hi again,
Sorry, just a couple more questions:
You answered my first question as Correct - we need to report the 1099-Q on our tax return.
However, in question 3, you stated:
...you do not to enter the tuition expense, because you are not entering the 1099-Q (you already know it's not taxable, and don't need TurboTax doing the complicated calculation).
So, do we enter or not enter the 1099-Q on our tax return?
Also, in that same question, you stated as a reason to not enter the 1098-T as: You do qualify for the tuition credit
However, due to our MAGI, I believe we do not qualify for any of the education tax credits, or the child tax credit.
I noticed this comment on this website as well: https://flyfin.tax/blog/when-should-i-not-claim-my-child-as-a-dependent
There are clearly more benefits than drawbacks to claiming your child as a dependent, but one clear situation in which you will not want to do so is if your income is high enough that you can't qualify for the education credits your college student dependent would allow you to qualify for.
If your child is a student, they probably have an income that's low enough for them to qualify for education credits, and it's very likely that those credits would amount to more savings for them than the Child Tax Credit would for you if you claimed them as a dependent. So, even though the Child Tax Credit is one of the most widely used by Americans when they claim their children as dependents, there are still times when it might be best not to claim your child as a dependent. It's always best to consult with a tax professional for advice on claiming children as dependents.
In reading this, it sounds like we should NOT claim our son as a dependent...and if so, can he qualify for any education credits? And how does all this affect my original question?
Sorry this is so confusing...thank you!
