1098-T, who files this low leftover balance?

Forum|Forum|3 years ago
February 20, 2023
1 reply
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Son entered college full-time in August, tuition and books were paid for by Pell Grant and state scholarship. He received a 1098-T, his taxable portion of leftover is about $2900, he had no other income for the year, and he was still 18 at the end of 2022. His dad and I still claim him on our taxes. I'm trying to get them done, but TT saying he needs to file to report this income. Elsewhere it says this amount isn't high enough for him to have to file so we don't need to do anything. Which is correct? Do I still enter the 1098-T on my return? Thank you!

HopeS

Yes, you should claim your son as a dependent and enter his Form 1098T as shown on the Form in order to claim education credit.

IRS PUB 501 states "Earned income includes wages, salaries, tips,

professional fees, and other compensation received for personal services you performed. It also includes any taxable scholarship or fellowship grant."

However, since this is the only income your son has for the year and it is less than the standard deduction of $12,950 for 2022 he does not need to file a return since the standard deduction will zero out his taxable scholarship.

Below please find additional helpful information:

Do Scholarships Count as Taxable Income

@jessgwyn

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