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Q. Does she have to file separately at all, to provide the IRS the same 1098-T information again? Or is she covered, by us including that information as our dependent?
A. Simple answer: no. The 1098-T is only an informational document. The numbers on it are not required to be entered onto your tax return.
However receipt of a 1098-T frequently means you are either eligible for a tuition credit or possibly your student has taxable scholarship income. If she has taxable scholarship to report, she MAY have to file a return. But, if she has no other income and the taxable amount us less than $12,550, she still doe not need to file.
I have a couple of questions if you could answer for me.
I have a question about a 1098-T. My daughter received one for her tuition that we paid for, It has her name and social on it, but we paid the tuition. Can we claim that on our taxes? We are claiming her as a dependent. I wasn't sure since it has her social.
Next question. She has a small Coverdell ESA that we took out. It was only for 663.09. That is listed in box 1 of the 1099-Q. IT has her name as the beneficiary and my name is the custodial. It only has her social on it. So does that mean she has to claim it on her tax return? She worked a little and only made about 2,000 for 2021. If I put the 1099-T on my return she has no way of showing on her return that it went to tuition. Then she will have to pay on her return.
I know I read that you said we didn't have to report it, but I would feel better if we did. I don't want any problems with the IRS.
Q. My daughter received a 1098-T with her name and social on it, but we paid the tuition. Can we claim that on our taxes? We are claiming her as a dependent.
A. Yes. Whoever claims the student as a dependent is the one who is allowed to claim the tuition credit. Enter her 1098-T, on your return, to do so.
Q. I know I read that you said we didn't have to report a 1099-Q. But, I don't want any problems with the IRS.
A. There is no risk of IRS problems by not reporting a 1099-Q. That's because the result is the same as when you do enter it: nothing is reported on your actual tax return. When your expenses balance out with the 1099-Q, you don't report it even when you try to report it. Entering it, just risks mistakes.
That said; you are allowed to enter the 1098-T on both her tax return and yours. But you have to adjust for any tuition you claimed for the credit, on her return. For such a small amount on the 1099-Q, you probably have enough book, computer and room and board to cover, so you may not even need the tuition. After entering the 1098-T (on her return), you will be asked to enter book expenses. That will get you to the room and board screen.
Thanks so much for responding back.
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