Follow up questions

[Nkm171964]

So just to confirm..
1- so do I then claim him as dependent and claim just the education credit with form 8863?

2- my son then would report taxable fellowship money under “Less common income” section- item “Child’s income(under age 25)”. Is that correct to say?

Thanks.

[AmyC]

1. If you qualify to claim the education credit, you should. The IRS has a great brochure that explains how scholarships and tax credits interact.

2. You can report it under other income but it is better to enter it in the education section. After  you enter the 1098-T, the program will ask about Scholarships /Fellowships

[Nkm171964]

Hi Amy, my follow up are related to my original questions and answers came that I can not report taxable fellowship for my son on my tax return as a parent. He has high w2 income and unearned income. 

so can you or anyone possibly clarify my last two questions based on overall posting? Otherwise it may be out of context to answer. Thank you.

[AmyC]

Your son's income was high with fellowship to report, you can't claim his w2 or any of his income- he is required to file a return.  His income passes the level required to file. You do not enter his income on your return. If a child has a w2 that must be reported, it automatically means all income on the child's return.

You stated that you are claiming him so you get the education credit. If you are not sure about claiming, you can run through a quick quiz, Whom May I Claim as a Dependent? and you can use  IRS Worksheet for Determining Support.

Your son must claim the income and either place is fine on his tax return. If the fellowship is entered in the education section, it will go to sch 1 line 8r, as it should.