1. You do want to enter both forms 1098-T for your son. If the scholarship can be used for other things, like room and board. See another post of mine here. You may want to make some of it taxable income to him for you to claim the AOTC - if you qualify. The IRS has a great brochure that explains how scholarships and tax credits interact.
If some of the income does end up being taxable income, then he can also add the 1098-T with the scholarship income and subtract the expenses that qualify.
Filing requirements for dependents can be found here or you can take a quick quiz at Filing requirement.
2. Your daughter has no tuition in box 1 - there must have been tuition costs. Check her bursar account to see what is listed. You can claim her as a full time student, regardless of the paperwork. The IRS knows she has a 1098-T, they got it.
Scholarship income is a hybrid, it counts as earned income to determine if your son needs to file but then it counts as unearned income to determine if the kiddie tax is necessary, like for your daughter. Scholarship income is filed on Form 8615 on the child's return. Please go through this quick quiz,
Filing requirement once you have your numbers, to see if she needs to file.
What is the Kiddie Tax?
[Edited 2/24/25 |8:13 am PST] @MANI1346
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