<p>Is this an actual accountant? Did they initially tell you to report the income on your taxes? If so, that is quite shocking.</p>
<p>You can claim your son as a dependent and get the dependent exemption of $3650. He should file his own tax return. He will get the standard deduction of $5700. He should report any taxable scholarship on his tax return. You should not report any of his taxable scholarships on your return. They are his income, not yours.</p>
<p>When you claim a dependent only you can claim the education tax credit for that dependent. Any qualified education expenses paid by him are treated as paid by you for the purpose of claiming the credit.</p>