Question

Can i include 1098 T and 1099 Q on my son's tax return?

Forum|Forum|4 years ago
March 2, 2022
1 reply
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Our family received a 1098-T under my son name and he is the one in college and we are paying for his college tuition. We also received a 1099-Q under my name.
I am filing income tax for my son (single status) and us (me and my wife as join status).
Next year I will try to have the 529 money send to my son's school instead of our account so the1099-Q will have his name on it and everything will be file on his return.
Here are questions for this year tax return:
1. How do we correctly file these forms on our returns (my son return and my return) this year?
2. I believe there is a income limitation for claiming the tuition credit and our income is over that so I can include those forms on my son return only for this year even though 1099Q is under my name and 1098-T is under his name. This way the tuition credit is more advantageous for him instead of us ?

M

MayaD

The 1099-Q gets reported on the recipient's return. If the form has your name and Social Security number you will report the form on your return. The 1098-T should also go on your return.

Your son has to report form 1098-T if he has taxable scholarship in box 5.

If the Education expenses were covered by the withdrawal you don't need to report forms 1099Q and 1098-T on your return.

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D

dvn2Author

So next year if both forms 1099Q and 1098T have his name on them and I don't claim him as my dependent can he benefit from the education credit on his return?

R

RaifH

It does not matter whose name is on the form to determine whether or not your son is your dependent. Even if you do not elect to claim him on your return, he would still have to mark on his return that he is eligible to be claimed as a dependent if he meets the definition of a dependent.

For the purposes of determining dependency, going to college is considered a temporary absence and he is still considered to be living with you. The deciding factor for children attending school aged 19-24 is usually whether or not they provide more than half their own support. If your son is paying his own rent and buying his own food and other necessities then you would not claim him as your dependent. If he is not, then he is still your dependent.

All that being said, there is a special rule regarding the American Opportunity Tax Credit. If your son is eligible to be claimed by you but is not claimed by anyone, then he can take the American Opportunity Credit on his own return. For more information, see IRS Publication 970. The American Opportunity Credit provides up to a $2,500 credit, $1,000 of which is refundable even if he has no taxable income.

To do this, you could not include him on your own return. In addition to not being able to claim that education credit which it sounds like you are not eligible for, it also means you would not be able to claim the credit for other dependents.