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browland1357
New Member

1098t tuition statement - My daughter uses an injury settlement to pay for college. I claim her as a dependent. Can I use the 1098-T she received to offset my taxes?

My daughter received a settlement for an injury incurred as a young child.  She is in college now and uses that money to pay tuition and related expenses.  She files a 1040EZ and cannot use the deduction.  Can I use it because she is a dependent of mine (I pay more than 50% of living expenses and she lives at home with me)?

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Accepted Solutions
MinhT
Expert Alumni

1098t tuition statement - My daughter uses an injury settlement to pay for college. I claim her as a dependent. Can I use the 1098-T she received to offset my taxes?

If you claim your daughter as a dependent, you only can claim her education expenses (on form 1098-T), even she paid her tuition with money from the settlement.

The IRS says:

Who can claim a dependent's education expenses.   If a student is claimed as a dependent on another person's tax return, all qualified education expenses of the student are treated as having been paid by that person. Therefore, only that person can claim an education credit for the student. If a student is not claimed as a dependent on another person's tax return, only the student can claim a credit.


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1 Reply
MinhT
Expert Alumni

1098t tuition statement - My daughter uses an injury settlement to pay for college. I claim her as a dependent. Can I use the 1098-T she received to offset my taxes?

If you claim your daughter as a dependent, you only can claim her education expenses (on form 1098-T), even she paid her tuition with money from the settlement.

The IRS says:

Who can claim a dependent's education expenses.   If a student is claimed as a dependent on another person's tax return, all qualified education expenses of the student are treated as having been paid by that person. Therefore, only that person can claim an education credit for the student. If a student is not claimed as a dependent on another person's tax return, only the student can claim a credit.


**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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