1098-T for home schooler taking full-time college classes

benalt613 · ‎February 5, 2023

My 15 y.o. daughter is home-schooled, but going to community college full time with credits that will eventually count towards a degree (it shows as "Personal Enrichment" in the system there). Once she gets her GED at age 16 it will change to her getting a degree. Can the 1098-T form from the college be entered for tax purposes? Turbo Tax says it must be a part of a degree program. It sounds like it shouldn't count until the "Personal Enrichment" designation changes to an actual degree when she gets her GED later this year. Would this be correct?

Hal_Al · ‎February 5, 2023

Q. Can the 1098-T form from the college be entered for tax purposes?

A. Yes.

The ability of the parent of a high school student to claim the education credit is limited. If these courses are provided by an eligible college, this cost qualifies for the Lifetime Learning Credit (LLC). The school must have policy of granting college credit for that course, already taken, if the student ever enrolls there (it sounds like you meet this standard). In other words, it is a requirement that the course be a college credit course, even if the student isn't currently a college student. It’s not that the student is post-secondary, it’s that the course is post secondary. Books are not a qualifying expense, unless included in the course fee.

High school students are not usually eligible for the more generous American Opportunity Credit, unless they are officially enrolled as a degree candidate. From pub 970: "Example 3. During the 2022 fall semester, Larry was a high school student who took classes on a half-time basis at College X. Larry wasn't enrolled as part of a degree program at College X because College X only admits students to a degree program if they have a high school diploma or equivalent. Because Larry wasn't enrolled in a degree program at College X during 2022, Larry wasn't an eligible student for tax year 2022." Reference: https://www.irs.gov/publications/p970/ch02.html

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Hal_Al · ‎February 5, 2023

Q. Can the 1098-T form from the college be entered for tax purposes?

A. Yes.

The ability of the parent of a high school student to claim the education credit is limited. If these courses are provided by an eligible college, this cost qualifies for the Lifetime Learning Credit (LLC). The school must have policy of granting college credit for that course, already taken, if the student ever enrolls there (it sounds like you meet this standard). In other words, it is a requirement that the course be a college credit course, even if the student isn't currently a college student. It’s not that the student is post-secondary, it’s that the course is post secondary. Books are not a qualifying expense, unless included in the course fee.

High school students are not usually eligible for the more generous American Opportunity Credit, unless they are officially enrolled as a degree candidate. From pub 970: "Example 3. During the 2022 fall semester, Larry was a high school student who took classes on a half-time basis at College X. Larry wasn't enrolled as part of a degree program at College X because College X only admits students to a degree program if they have a high school diploma or equivalent. Because Larry wasn't enrolled in a degree program at College X during 2022, Larry wasn't an eligible student for tax year 2022." Reference: https://www.irs.gov/publications/p970/ch02.html