College student claimed as dependent

Forum|Forum|2 years ago
February 21, 2024
11 replies
39 views

I have a 21 year old full time college student. He received a few W-2s from jobs he has had and a 1098T from college. The 1098T has $13,039 in box 1 and $18,836 in box 5. He made over $15,000 with his W2's. I am claiming him as a dependent. When he files his taxes, he checks I can be claimed as a dependent as someone else's taxes. He also claims the 1098T, correct as taxable income, correct?

Thank you!

Best answer by KrisD15

Yes, in your situation, since there are no expenses for an education credit, the 1098-T is entered into the student's TurboTax program, as well as his other tax documents, such as his W-2.

Yes, be sure he selects "Someone else can claim me" and "Someone else WILL claim me"

KrisD15Answer

Level 15

Yes, in your situation, since there are no expenses for an education credit, the 1098-T is entered into the student's TurboTax program, as well as his other tax documents, such as his W-2.

Yes, be sure he selects "Someone else can claim me" and "Someone else WILL claim me"

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VSN7

Level 2

Can you please elaborate what you mean by enter "1098-T is entered into the student's TurboTax program"? In my case, Turbo tax told me enter that in our return instead of my son's return.

AmyC

Level 15

no. It is only $250. And I also have 529 1099-Q to cover his tuition.

The 529 is not entered since it is used entirely and I would say it went to room and board rather than tuition. This leaves box 5 scholarship income to be used for tuition. The student can't claim an education credit when parents are claiming so the 109-T is not entered unless taxable scholarship income, which you don't have. The kiddie tax does not come into play since the scholarship is not taxable. His taxes should be very simple with no forms!

Your taxes would have only the 1098-T and the education credit. The IRS has a great brochure that explains how scholarships and tax credits interact.

IRS Publication 970, Tax Benefits for Education states:

If the entire 1099-Q went to qualified expenses, room and board, tuition, etc then you do not need to enter the form. Tuition paid for the first 3 months of the next year also qualify, see page 12, What Expenses Qualify, and page 52 for qualified distributions.

Page 45 repeats: Don't report tax-free distributions (including qualifying rollovers) on your tax return.

@VSN7

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