my son, my dependent, attends an eligible college, for 25-26 school year.
his grants is $30320,
tuition is $23348, so grants - tuition =$6972, this will be his taxable income, right?
his subsidized loan is $5442.
his room and meal expense is $14160,
his work study income in 2025 is expected to be $4000
his unearned income is estimated to be $200
I would like to treat $4000 grant as his taxable income in order to get ATOC.
My quesitons are,
1. I want to do 529 withdraw now. Is my 529 qualified expense $14160 (meal/board) or $14160 - $6972 (grants -tuition)=$7188?
2. Since the taxable grants is treated as earned income by dependent's filing requirement in 1040 Instruction, right ? if so, my son's taxable earned income will be $6972 (grants -tuition)+$4000 (ATOC )+$4000 (workstudy) =$14972, his unearned income is $200. is he required to file a tax return of 2025?
