1098 T for child in high school and college

[twoenough]

Hello,

I have a child in high school and she is taking a couple of college courses.  She is considered a CCP Student. (College Credit Plus)  The state of Ohio pays for all of her  courses at the college as a high school student if they can be used for both high school and college credit.  She took a class that did not meet this criteria so we had to pay for that one class out of pocket.  Because of this one class we paid for she received a 1098 T.  Box 1 shows all of the cost to attend and box 5 shows what she received being a CCP student.  The difference in cost is of course the one class we paid for.  If she did not take that one class she would not have received the 1098 T.  I know this because she has been a CCP student now for several years and I called the college to find out why we received one this year.  They said it was because of the one class we paid for.  I do not want to use this 1098 T to earn the education credit on my taxes.  You can only claim the education credit for 4 years and I would rather start next year when I know she will have more expenses as a full time college student out of high school.  So, my question is... since I don't want to take the education credit do I just do nothing with the 1098 T?

[Hal_Al · Accepted solution]

Yes, you can just do nothing with your 1098-T.  The 1098-T is only an informational document. The numbers on it are not required to be entered onto your (or the student's)  tax return. 

But you should claim it.  The four year limit is for claiming the more generous American Opportunity Credit (AOC or AOTC). There is no limit on how many times you can claim the other credit, the Lifetime Learning Credit (LLC) . It's 20% of the tuition paid.

As an aside, you are probably not even eligible for the AOTC, for the situation you describe.

[twoenough]

Thank you Hal_Al.

I went into my returned and I answered all the questions and she did quality for the AOC I think because she is considered at least a half time student.  I went back in and when Turbotax asked if she was at least a half time student I replied no. This did give her the LLC credit.  Her 1098-t has box 8 checked that she was at least a half time student.  Is it ok that I told Turbotax no?  I think this is just a question for Turbotax and won't effect anything at the IRS correct?  Turbotax also asked if this was her first year of college and I said no since she was a CCP student in the past.  Is this also ok? These questions won't effect anything next year when I want to claim the AOC correct?

[Hal_Al]

Q. Is it ok that I told Turbotax no?  I think this is just a question for Turbotax and won't effect anything at the IRS correct? 

A. Yes.  You are absolutely right. Lying to TurboTax (TT) to get it to do what you want does not constitute lying to the IRS.  There is a way to select the LLC when TT wants to give you the AOC.  But, you way works too. 

Q. Turbotax also asked if this was her first year of college and I said no since she was a CCP student in the past.  Is this also ok?

A. Yes.

Q. These questions won't effect anything next year when I want to claim the AOC correct?

A. Correct. 

High school students are not usually eligible for the more generous American Opportunity Credit, unless they are officially enrolled as a degree candidate.  And that is unusual. Reference: https://www.irs.gov/publications/p970/ch02.html

[twoenough]

It is unusual but my daughter will have 2 Associate Degrees when she graduates High School.  I had a feeling I had to lie to Turbotax to get the LLC.

Thank you so much for your help.  It saved me a little more on my taxes!