I assume "$44575 actual 529 qualified expenses" means that $44,575 was the amount in box 1 of the 1099-Q.
Q. How do I enter this in TT?
A. Enter the 1098-T, on the students return, with box 0 in box 1 and 1876 in box 5.* TT automatically treats the difference between box 5 and box 1 as taxable scholarship. Verify by checking that $1876 shows up on line 8r of Schedule 1.
If his interest and dividend income is less than $451, he is not required to file a tax return.
Someone who can be claimed as a dependent must file a tax return for 2025 if he had any of the following:
- Total income (wages, salaries, taxable scholarship etc.) of more than 15,750 (2025).
- Unearned income (interest, dividends, capital gains, unemployment, taxable portion of 529 distribution) of more than $1350.
- Unearned income over $450 and gross income of more than $1350.
- Household employee income (e.g. baby sitting, lawn mowing) over $2600 ($17,750 if under age 18)
- Other self employment income over $432, including money on a form 1099-NEC
*The 1098-T is only an informational document. The numbers on it are not required to be entered onto your tax return. However receipt of a 1098-T frequently means you are either eligible for a tuition credit or possibly your student has taxable scholarship income.
If you claim the tuition credit, you do need to report that you got one.
You claim the tuition credit, or report scholarship income, based on your own financial records, not the 1098-T.
Or if you find it easier, just change the numbers in boxes 1& 5 to what your records show. The 1098-T that you enter in TT is not sent to the IRS.
