Education

Yes.  You can claim him on your personal taxes (assuming he is under 24) and claim the education credits if you qualify. 

Technically, he should not have to file a return since his income is under the standard deduction, unless he performed services for the scholarship. If he did not perform services for the scholarship, then it should not have been reported on the 1099-NEC as this is only meant for self-employment.  You can contact the issuer to get it corrected.  If they do not correct it, since it is over the $400 threshold, you would technically need to file a return for just that reason.  If they do correct it, then you would not need to file a return for your son.

If you do have to file and include the 1099-NEC, you can enter it and then back out the income.  If you enter it as self-employment, you will need to upgrade to TurboTax Premium or Home and Business, so the better way to enter it would be by taking the following steps:

To enter the 1099 NEC as non-self-employment income take the following steps:

• Income
• 1099-NEC under Other Common Income
• Enter the information from the 1099-NEC
• Continue through and say the work this is a hobby activity
• continue through

Then you will take the following steps to remove the income:

• Income
• Less Common Income
• Miscellaneous Income
• Other Reportable Income
• Answer Yes to Any Other Taxable Income
• Enter the description such as 1099-NEC received for Scholarship income erroneously reported on 1099-NEC
• Enter the amount on the 1099-NEC as a negative number. 

If he DID perform services to receive this, he WILL need to include it on Schedule C as self-employment income and file a return as it is over the $400 threshold.