He can be claimed as a dependent for 2024. As stated earlier, the parents can forego that (and the $500 other dependent credit) to allow him to claim the tuition credit. He still marks his return that he CAN be claimed as a dependent. He is not eligible for the refundable portion of the AOC.
You can add food to the rent in determining the amount of R&B paid in 2024. The amount of R&B allowed, for the 1099-Q, is the lower of your actual costs or the school's allowance for cost of attendance (essentially what on campus students pay).
So, he does need to enter his 1099-Q. Theoretically TurboTax (TT) can handle it. But mistakes are frequent. The bottom line for you is: what ever amount of the $2049, in box 2, that ends up taxable (I rough estimate about $500+), will be wiped out by the increased tax credit ( TT should use the LLC instead of the AOC). If you get something different, reply back and we'll kook for a workaround. You should get a screen "Amount used to calculate education credit". You have a special situation. I would start with $3000 in that box. You may have to adjust it.
Enter the 1099-Q before your enter the 1098-T. You may have to delete both and start over. For room and board, enter only the amount over $6659 (the amount allocated to the parent's 1099-Q). Enter your book expense.
Other things to be aware of:
1. The taxable portion of the 1099-Q is unearned income and the "kiddie tax" form 8615 will be generated.
2. Any self employment tax (line 23 of form 1040), from the independent contractor gig, will NOT be wiped out by the education credit.
