You can enter the 1099-Q and 1098-T into the dependent student's TurboTax program since there is no education credit involved. The program will determine the taxable income he might need to report.
REMEMBER a distribution from an education savings account can be used for room and board, making that amount (the amount that paid for room and board) not taxed.
Even if the student lives at home, there are room and board expenses which you can apply against the distribution. The Room and Board expense cannot be larger than what the school would charge. Contact the school to find out the amount they would charge, the average is 12,986.
There is no penalty on the distribution since the student earned a scholarship for that amount in the same year.
Also, remember that Box 1 on a 1098-T only reports tuition. There may be books and supplies that the student also paid for and those expenses count against the scholarships.
If the student has no other income and the taxable income he needs to claim (after room & board and additional expenses are taking into account) is 14,600 or less, he would not be required to file.
Pub 970
Topic 551
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