Solved: 1098-T
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Level 1

1098-T

My parents can no longer claim me because I turned 24 in 2020, but I was still a full-time undergraduate student for half of 2020 and they paid for all my schooling. Can they enter my 1098-t into their taxes since they paid for my tuition, or do I have to enter it since they can no longer claim me?

1 Best answer

Accepted Solutions
Level 15

1098-T

"My parents can no longer claim me because I turned 24 in 2020."

 

That's not necessarily true.  

There are two types of dependents, "Qualifying Children"(QC) and standard ("Qualifying Relative" in IRS parlance even though they don't have to actually be related). There is no income limit for a QC but there is an age limit, student status, a relationship test and residence test. Only a QC qualifies a taxpayer for the Earned Income Credit. They are interrelated but the rules are different for each.

The support test is different for each type. The support test, for a QC, is only that the child didn't provide more than half his own support. The support test for a Qualifying Relative is that the taxpayer provided more than half the relative's support.  At age 24 you cannot longer be a QC (unless you are disabled).  But , you can still be a qualifying relative. See qualifying relative rules below. 

 

As other have said, you must be their dependent in order for them to claim the education credit.  If you are not their dependent, you can claim the credit, even though they paid the tuition. But. it's apt to be much less on your return, maybe even 0.

 

The good news is: If you are not their dependent, in 2020, you can claim the $1800 (1200 + 600) and maybe the later $1400 on your 2020 tax return. 

 

 

 

A person can still be a Qualifying relative dependent, if not a Qualifying Child, if he meets the 6 tests for claiming a dependent:

  1. Closely Related OR live with the taxpayer ALL year
  2. His/her gross taxable income for the year must be less than $4300 (2020).
  3. The taxpayer must have provided more than 1/2 his support

In either case:

  1. He must be a US citizen or resident of the US, Canada or Mexico
  2. He must not file a joint return with his spouse or be claiming a dependent of his own
  3. He must not be the qualifying child of another taxpayer

View solution in original post

2 Replies
Level 15

1098-T

If you were 24 at the end of 2020, the only way your parents can claim you is if you had less than $4300 of income.  Did you have more than $4300 of income for 2020?

 

 

Your parents cannot get the education credit if they cannot claim you as a dependent.   Only the person who can claim the dependent can get the education credit.  You can enter it on your own return.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
Level 15

1098-T

"My parents can no longer claim me because I turned 24 in 2020."

 

That's not necessarily true.  

There are two types of dependents, "Qualifying Children"(QC) and standard ("Qualifying Relative" in IRS parlance even though they don't have to actually be related). There is no income limit for a QC but there is an age limit, student status, a relationship test and residence test. Only a QC qualifies a taxpayer for the Earned Income Credit. They are interrelated but the rules are different for each.

The support test is different for each type. The support test, for a QC, is only that the child didn't provide more than half his own support. The support test for a Qualifying Relative is that the taxpayer provided more than half the relative's support.  At age 24 you cannot longer be a QC (unless you are disabled).  But , you can still be a qualifying relative. See qualifying relative rules below. 

 

As other have said, you must be their dependent in order for them to claim the education credit.  If you are not their dependent, you can claim the credit, even though they paid the tuition. But. it's apt to be much less on your return, maybe even 0.

 

The good news is: If you are not their dependent, in 2020, you can claim the $1800 (1200 + 600) and maybe the later $1400 on your 2020 tax return. 

 

 

 

A person can still be a Qualifying relative dependent, if not a Qualifying Child, if he meets the 6 tests for claiming a dependent:

  1. Closely Related OR live with the taxpayer ALL year
  2. His/her gross taxable income for the year must be less than $4300 (2020).
  3. The taxpayer must have provided more than 1/2 his support

In either case:

  1. He must be a US citizen or resident of the US, Canada or Mexico
  2. He must not file a joint return with his spouse or be claiming a dependent of his own
  3. He must not be the qualifying child of another taxpayer

View solution in original post

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