I didn't misread it. The $4000 for the AOTC is separate from the W-2. But, thanks for the point out. I didn't address an issue:
Q. Does your son even need to report any of this?
A. No, unless he needs to file a tax return to get his W-2 withholding refunded. $19500 scholarship minus $12000 tuition = $7500 taxable scholarship. $7500 + $4200 (W-2) = $11,700 total income. This is less than the $14,600 filing requirement. He does not need to file a tax return.
The 1098-T is only an informational document. The numbers on it are not required to be entered onto the student's tax return.
If the amount in box 1 of the 1st 1098-T is $4000 or more, you can report only the that one 1098-T on your tax return. The 2nd one isn't needed. $4000 of tuition is all that is needed to get the maximum AOTC ($2500).
"A 1098-T should be on my return or my son return, never goes in both return".
That's not true. The 1098-T is only an informational document. The numbers on it are not required to be entered onto your tax return. However receipt of a 1098-T frequently means you are either eligible for a tuition credit and/or the student has taxable scholarship income. The 1098-T is used as an entry tool to do either or both, when needed.
