Hello,
Helping mother and child figure out tax situation.
* Father passed away so 18yo child got benefits from Social Security
* Mother list child as dependent on her now Head of Household tax return
* Mother paid for most of expenses through the year
* Daughter has W-2 income of $23K (Fed W/H of $1200) along with $11K in Social Security income from father
* Daughter also started accredited UCSC in California more than half time toward 4 year degree
* Daughter got 1098-T from school with Box 1 qualified payments of $11K and Box 5 grants of $24K
After entering on Childs return, shows $9500 of SS benefits are taxable (probably because of W-2 income) and no other credits so she owes about $2200 to IRS. Mom paid for some room & board, travel but apparently no where to write that off that I can find to make any difference. There are more book fees that were required which I think ARE deductible but not entered yet. Where should they be on the Childs return? Or mothers return? Trying to lower her tax burden but just not sure what else to look for.
Lastly confirm that the 1098-T needs to be entered on the Childs return only. I don't need to answer any of that on the mothers return or do I to see if any of the other book expenses would help. Tough situation trying to help guide them to answers.
Thanks,
Scott
