Daughter withdrew from college a couple months in. But, we still paid full tuition. When we check 'no' for full time student, can we still claim the tuition?

[Hal_Al]

Q. When we check 'no' for full time student, can we still claim the tuition?

A. Yes.  If you paid net tuition, you can claim the tuition credit, even if your student-dependent did not complete the academic term.  After entering the 1098-T, in TurboTax, check half time or more for student status. The half time or more status is usually already checked on the 1098-T. 

There is another issue about her student status: whether she can still be your dependent. 

There are two types of dependents, "Qualifying Children"(QC) and Other ("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.

A child of a taxpayer can still be a “Qualifying Child” (QC) dependent, regardless of his/her income, if:

1. He is under age 19, or under 24 if a full time student for at least 5 months of the year, or is totally & permanently disabled
2. He did not provide more than 1/2 his own support. Scholarships are excluded from the support calculation
3. He lived with the parent (including temporary absences such as away at school) for more than half the year

If she is over 18 and wasn't a fulltime student for parts of 5 calendar months,  she can only be your dependent under the Qualifying Relative rules. Those rules have a $4400 income limit, for 2022.

See full dependent rules at: https://turbotax.intuit.com/tax-tools/tax-tips/Family/Rules-for-Claiming-a-Dependent-on-Your-Tax-Ret...

[DavidD66]

There is no requirement in Publication 970 Tax Benefits for Education for a student to pass a course, complete a course, or even attend the class. The requirement is that they be "enrolled", and that's pretty much it.  For the American Opportunity Credit, the requirement is Student must be enrolled at least half time for at least one academic period beginning in 2022.  The Lifetime Learning Credit is available for one or more courses, and student does not need to be pursuing a degree or other recognized education credential.  

As Hal_Al stated, there may be an issue with whether or not she qualifies as your dependent.  If she does not, she may be able to claim a credit on her tax return, depending on her income.