I claim my daughter as my dependent. On the 1098T Box 1 is around 26,000 and Box 5 is 7,000. Her father (we are divorced) has a 529 plan for her and after that was applied and her fed student loan, I paid less than $1000 out of pocket towards the tuition. Do I have to file this document?
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No ... you never have to take any credit.
No, you are not required to file with this document. However, if your daughter is eligible for the American Opportunity Credit, it is a dollar-for-dollar credit for the first $2,000 of eligible expenses and can be as high as $2,500. In addition to tuition, this includes supplies and books required for her study.
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