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ourfamily123
Level 4

1098t

Do parents of full time dependent grad school student claim the 1098t or does the student enter on their taxes?

 

1 Best answer

Accepted Solutions
PattiF
Employee Tax Expert

1098t

You would claim the 1098-T for your dependent child on your tax return to receive the Lifetime Learning Credit. It is a non-refundable credit which means it will only reduce the tax that you owe, not add to your refund. That is assuming that your dependent is in their fifth year of school as a graduate student.

 

See the information below:

 

American Opportunity Tax Credit (AOTC)

You can use this credit for the first four years of college when working towards a degree.

  • Maximum credit is $2,500 per eligible student.
  • Must be enrolled at least half time for at least one semester during the tax year.
  • Up to $1,000 can be refunded to you.

Lifetime Learning Credit

There is no limit on the number of years you can use this credit for undergraduate, graduate and professional degree courses, including ones to improve job skills.

  • Maximum credit is $2,000 per tax return.
  • Can be used when you're only taking one class.
  • You don't need to be working towards a degree.
  • None of the credit is refundable.

View solution in original post

5 Replies
xmasbaby0
Level 15

1098t

That depends----if the student is a dependent the education credit is claimed by the parents.   If the student cannot be claimed as a dependent then the student uses it,

 

Does the student fit the criteria to be a qualifying child or qualifying relative?  (Grad school is not the determining factor)

 

 

WHO CAN I CLAIM AS A DEPENDENT?

 

You can claim a child, relative, friend, fiance (etc.) as a dependent on your 2019 taxes as long as they meet the following requirements:

Qualifying child

•They are related to you.

•They cannot be claimed as a dependent by someone else.

•They are a U.S. citizen, resident alien, national, or a Canadian or   Mexican resident.

•They are not filing a joint return with their spouse.

•They are under the age of 19 (or 24 for full-time students).

    • No age limit for permanently and totally disabled children

        They live with you for more than half the year (exceptions apply).

Qualifying relative

•They don't have to be related to you (despite the name).

•They cannot be claimed as a dependent by someone else.

•They are a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.

•They are not filing a joint return with their spouse.

They lived with you the entire year.

•They made less than $4300  (not counting Social Security)

•You provided more than half of their financial support. More info

When you add someone as a dependent, we'll ask a series of questions to make sure you can claim them.

Related Information:

Does a dependent have to live with me?

What does "financially support another person" mean?

Can I claim a newborn baby?

 

**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.**
ourfamily123
Level 4

1098t

I specified dependent full time student. so we claim it and she doesnt entered it too. Right?

RayW7
Expert Alumni

1098t

You cannot claim the American Opportunity Tax Credit “if you’re claimed as a dependent on another person’s tax return, such as your parent’s tax return,” according to the IRS. The same applies to the Lifetime Learning credit.

ourfamily123
Level 4

1098t

I am the parent asking the questions. Do we claim the 1098t or does our dependent child?

PattiF
Employee Tax Expert

1098t

You would claim the 1098-T for your dependent child on your tax return to receive the Lifetime Learning Credit. It is a non-refundable credit which means it will only reduce the tax that you owe, not add to your refund. That is assuming that your dependent is in their fifth year of school as a graduate student.

 

See the information below:

 

American Opportunity Tax Credit (AOTC)

You can use this credit for the first four years of college when working towards a degree.

  • Maximum credit is $2,500 per eligible student.
  • Must be enrolled at least half time for at least one semester during the tax year.
  • Up to $1,000 can be refunded to you.

Lifetime Learning Credit

There is no limit on the number of years you can use this credit for undergraduate, graduate and professional degree courses, including ones to improve job skills.

  • Maximum credit is $2,000 per tax return.
  • Can be used when you're only taking one class.
  • You don't need to be working towards a degree.
  • None of the credit is refundable.

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