topic Re: Qualifying relatives 1098T in After you file

Qualifying relatives 1098T

abierika — Wed, 29 Apr 2020 22:34:51 GMT

I'd like to amend my 2019 taxes as my son gave me his 1098T. I had claimed my son as a dependent even though he's 26 but I considered him a qualifying relative because he earned less than $3000. I'd like to amend now because he gave me his 1098T which I can use to receive a better refund. The problem is that it gives him him an additional $5400. in "income" as he received a grant (box 5). Can I still consider him as a qualifying relative because he "earned"that much more or does it depend on real earnings and not income from a 1098T?

Re: Qualifying relatives 1098T

AnnetteB6 — Wed, 29 Apr 2020 23:06:58 GMT

According to the IRS, the gross income test for claiming a qualifying relative includes "all income in the form of money, property, and services that isn't exempt from tax." This does include certain scholarship and fellowship grants. Since the grant is deemed taxable after entering the education expenses, his taxable income exceeds the limit to be claimed as a qualifying relative.

Here is a link to Publication 501 which discusses the requirements for claiming a qualifying relative: Publication 501

@abierika

Re: Qualifying relatives 1098T

abierika — Thu, 30 Apr 2020 00:30:01 GMT

Thanks. Wow, that's a bummer but I had a hunch. What to do now? I had claimed him as a dependent! Amend and take him off?