I have read most of those documents, and compared to the examples given, our case seems to be pretty straight forward:
- We claim our son as a dependent. I think that is what we have to do, even if he files separately.
- We don't qualify for the education credit because of the income limit. So, I suspect both 1098-T and 1099-Q could go on his tax return forms.
- After the scholarships, the remaining $11, 188 is what the university asked us to pay.
- All of $11,188 was paid from the 529 plan to the university directly.
Since that money went directly to the university for his tuition and room and board, we expect to pay nothing in taxes on the earnings of $2370. How do I enter the forms in TurboTax for that to happen?
When I enter both forms on my son's return, he ends up with additional income of $1,602 from Schedule 1.
