I am working on a tax return for my nephew who graduated during 2019. His Mother is not claiming him as a dependent as he worked part-time while in school in the spring and full-time after he graduated in May. He easily provided more than 50% of his support by my estimation. AGI = $35k.
He took a light spring load in school – 7 hrs (2 classes). His 1098-T has box 8 “Check if at least half-time student” checked.
The issue is the 10% credit for contributions to his 401(k) at work. He is eligible if I do not report him as a “full-time student”. He is ineligible if I do report him as such.
My gut says to not report him as “full-time” and take my (or his?) chances. 7 hours does not constitute full-time in my eyes. But that is a subjective view.
Curious of anyone’s opinion.