Thank you.
If I understand correctly:
When my son files his tax return, he reports his 1098-T (but he can/should leave the box 1 blank, since we paid that amount with the 529 and reported the 1099-Q on our tax return?).
Because his total income is below $13,850, he will NOT be taxed on any of his income (including scholarship), and he should be able to get a refund of his federal income tax that was withheld?
In the future, if his income goes above the $13,850, he will need to pay a "kiddie tax" on the excess amount over that limit?
Since we will not get any credits by claiming him as a dependent, does it matter whether we claim him or don't claim him? If we do NOT claim him, can our son get any refundable (education) credit at all? (Hal_Al stated: If the student actually has a tax liability, there is a provision to allow him to claim a non-refundable tuition credit. ) I'm assuming he will not have a tax liability, because he would not owe any taxes, correct?
Thank you!
