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TT indicates that my dependent 20 year old child must enter the 1098-T on his taxes. Do I still include the 1098-T on mine?

TT indicates that my dependent 20 year old child must enter the 1098-T on his taxes. Do I still include the 1098-T and additional scholarships on mine?  (this doesn't seem correct because his tax return is also paying for the taxable scholarships)

 

Additional related details and questions:

He has additional scholarships that are not reported on the 1098-T, all together totaling 31,250 in scholarships with qualified expenses of 20,987.  The remaining taxable amount he spent on room and board is 10,263.  He has W-2's for part time jobs totaling 12,196.  This brings his total income to 22,459, resulting in a taxable income of 8,609.  Based on form 8615 a portion of that must be based on my tax rate but there is also a checkbox option to claim it on my return.  

I've been through the TT step by step on my return and I'm unclear where to do this?

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1 Reply
AmyC
Employee Tax Expert

TT indicates that my dependent 20 year old child must enter the 1098-T on his taxes. Do I still include the 1098-T on mine?

1. The 1098-T definitely goes on his return due to the high scholarship. If you are going to claim the education credit, then you will add it on your return and deduct the expenses. You can claim up to $4,000 for AOTC credit, if your income qualifies, up to $160,000 for MFJ.  The IRS has a great brochure that explains how scholarships and tax credits interact and IRS Q & A about education credits

 

2. The kiddie tax can be on parent or student depending on the circumstances. Since he has to file, the 8615 will go on his return. You can't claim his w2 on your return. The kiddie tax will not be part of your return, only his. See What is the Kiddie Tax?,

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