Kid went to college, worked part time this summer, get some federal scholarship (FAFSA based), we support him of course

[ana_]

Hello!

Our son is 19 yo; he graduated from high school this Spring (2022); worked 2 summer months (earned less than 2k); he went to college in a different city (so he lives separately from us in a dorm from Aug 2022); he got a loan from Federal dept of Education (FAFSA based) and of course we are paying for everything else what is left to pay for (his housing partially, books, food, clothing, electronics, etc) - as loans are not covering 100% of his living& college expenses. He got BrightFutures scholarship from State (we are in Florida) which covers his tuition (but not books or anything else), which is resolved between Florida dept of Education and his public College directly. Do we (parents, both working, married filing jointly) file taxes all together with him as dependent or does he file taxes himself for 2022 then? If we file them with him being dependent, all these loans, scholarship (not sure on this one as he never saw these money), his summer earnings - how do we report this?  If he does file taxes himself, then our expenses on his and his study can not be claimed as we can not claim him as a dependent anymore? Thank you in advance, Ana.

[Paul_W1 · Accepted solution]

Hi Ana,

This is a great set of questions.  I am very familiar with the FAFSA.  Based upon your information (very detailed), your son can still be claimed as a dependent even though he does not reside with you.  Going to college is a temporary absence per the IRS rules.  Also, his income is low enough that does not require filing.  However, this appears to be a rare situation which if he had any federal taxes withheld (look at box 2) when he gets is w2 in Jan 2023.  If there is some amount that would be eligible to get back, he could file his own taxes in 2022.  He would mark his tax return "someone can claim him as dependent". or possibly leave that box unchecked.   Other items that may come into play will be getting a 1098-T from his college.  That won't be available until Jan 2023.  Please ask the college at that time.  Based upon the information, it does appear you will be able to file married jointly and claim your dependent as well.  When you do your taxes with Turbo Tax, our tax experts can assist more in-depth.  Hope this information has helped you.  Happy holidays.