1098-T

[dandeck421]

Parent pays tuition and student receives 1098-T. Student earns too much to be claimed as a dependent. Can parents still claim the 1098-T on their return?

[KurtL1]

If the student is under the age of 24 and does not pay over one-half of his own expenses, you can still claim him on you return. Under the age of 24 the income of the dependent is not taken into account. The tuition paid is part of his expenses he did not pay.

You can claim the Education Credit using the 1098-T if the student is not a dependent on your return. He will need to claim the education credit on his own return even if you paid the tuition and fees.

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[dandeck421]

Thanks Kurt

Student is 25 and made more than the $4,200 ($6,200) - so can't be claimed.  He will get all his taxes back.  So I don't think the 1098-T will help him or his parents?

[KurtL1]

The American Opportunity Credit has a Refundable Credit element that, depending on his income, might be able to add to his refund. He should enter the information on his return and see if it changes his refund.

Refundable Credits are those credits that are applied after the total tax due is calculated.