Do I include my son's scholarship money he received as income on my taxes?

[deew16]

I'm claiming him as a dependent.  He doesn't have a job and he lived with us the entire year.  We still support him.  Also we took out money from a college account to pay his tuition along with the scholarship.  Do I include that too?  It is a 529 college plan.

[KenH1 · Accepted solution]

Yes, but not as income.

First enter the 1099-Q (for the 529 distribution) in:

Deductions & Credits > Education >  ESA and 529 qualified tuition programs (from 1099-Q)

Then enter the qualified educational expenses:

Deductions & Credits > Education >  Expenses and Scholarships (Form 1098-T)

When you get to Here's Your Education Summary, scroll down and start Scholarships/Grants (for all schools)

This will offset your qualified educational expenses.