My daughter is my dependent and lives at home. Her college expenses were paid by her grandmother through her 529 plan. Do I report the 1098-T on my taxes even though I did not pay her tuition?
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Yes. Only you can claim the education credit.
So even though I did not pay tuition, I still get the education credit??
Q. Do I report the 1098-T on my taxes even though I did not pay her tuition?
A. Yes. More specifically, you claim the tuition credit, on your tax return, because the student is your dependent. It doesn't matter who actually paid the tuition.
Q. So even though I did not pay tuition, I still get the education credit?
A. Yes. Although the general rule, in taxes, is that you must be the one making the payment, to get the deduction or credit, there is an exception for education.
Grandma is not allowed to claim the credit. The student is not allowed to claim the credit. Only you can.
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