Hello What is preferred: should I file the son's undergrad tuition with my income tax returns or student tax returns to maximize benefit?

[deepaktigarg-gma]

Hello What is preferred: should I file the son's undergrad tuition with my income tax returns or student tax returns to maximize benefit?

[KrisD15]

If the student is your dependent and you claim him-

Only you report the 1098-T if it results in a education credit

Only he reports any taxable income if it shows income. 

If more education expenses were paid than the tax-free aid/scholarship he received, you get the credit.

If more tax-free aid/scholarship was received than education expenses were paid, he claims the excess as income. 

[Hal_Al]

It's not usually optional.  The tuition credit goes with the student's dependency.  

While technically there is a provision that allows your student-dependent to claim a federal tuition credit, from a practical matter it seldom works out.  A full time student, under age 24, is only eligible for the refundable portion of the American Opportunity Credit (AOTC) if he/she supports himself by working. She cannot be supporting herself on student loans & grants and 529 plans and parental support.  It is usually best if the parent claims that credit.  

If the student actually has a tax liability, there is a provision to allow him to claim a non-refundable tuition credit. But then the parent must forgo claiming the student as a dependent, and the $500 other dependent credit.  The student must still indicate that he can be claimed as a dependent, on his return. This is worth up to $2500 (AOTC shifts to all non refundable)

[deepaktigarg-gma]

Hello

So my son is less than 24 years old and is doing undergrad. He did not receive any financial aid but he has to file his taxes separately as his income is more than $10K for 2024 (he has to file separately right?). We did not have 529 plan. All money was paid by me.  So should i claim on my taxes, but it seems there is no tax benefit?

Please advise

Thanks and appreciate it.

[KrisD15]

Yes, he needs to file if he has income he needs to report, however, as posted in the answer below, he may noy be required to file based on his income. 

He will select "Yes, someone else can claim me" and "Yes someone else will claim me" in the Personal Info section. 

Yes, there might be a significant tax benefit to you if you claim the student (student did not supply more than half his own support) and you claim the expenses for a credit.

If the student did not get a scholarship or other financial aid, and you paid the education expenses, the student should have received Form 1098-T showing what was paid to the school. The student may need to get a copy online. 

Form 1098-T is used to report the education expenses (Tuition, Fees, Books and Supplies) which are used to apply for an education credit by the taxpayer that claims the student. 

This section is located under

Deductions & Credits

Education 

IRS Pub 970 explains more 

[Edited 2/14/2025 7:15pm PST]

[Hal_Al]

Q. Does he have to file his taxes separately,  as his income is more than $10K for 2024?

A.  Not exactly.  First, the filing requirement for 2024 is $14,600, if his income is from working ("earned income"). Second, a person who has to file a tax return can still be a dependent.  There is no income limit for a full time student under age 24, to be  a dependent. 

Q.   So should i claim on my taxes, but it seems there is no tax benefit?

A. You should claim the student as your dependent.  Since the student is your dependent, you can claim the $500 Dependent credit and the Tuition credit which is worth up to $2500 to you, but worth nothing to him on his return. 

[Uther]

If your son is your dependent, the education credit MUST be on your return.
If he's not your dependent, it cannot be on your return.

[deepaktigarg-gma]

Hello,

any tax benefits for filling for 1098-T?

Thanks

[deepaktigarg-gma]

Hello

 when I file the turbo tax it is saying if is income is more than $5,045 he is not considered dependent?

So how come $14,600 is different from what Turbo tax is telling me.
Thanks 

[DawnC]

Go back through all of the questions in the dependent interview; you will be asked if he is a full-time student.   If he was under age 24 (as of 12/31/24) and a full-time student, his income level does not matter.    See Qualifying Child - The income question is only relevant for Qualifying Relatives.    What education tax credits are available?  

[deepaktigarg-gma]

Thanks will try it and ask questions if need be

[deepaktigarg-gma]

Should i claim his W2 income on tax returns right?

[deepaktigarg-gma]

This does let me add his W2s.

[BrittanyS]

No, you will not claim his W-2 income on your return.  You are just claiming him as a dependent.  He will need to file a separate return for his W-2 and indicate that he was claimed as a dependent on someone else's return.  To enter this in TurboTax, you will follow these steps:

1. Create a TurboTax account for your son
2. Under my info answer the question "Another Taxpayer can claim me as a dependent on their return" as "Yes"
3. Answer the question for "Will this person claim you as their dependent on their 2024 return" as "Yes"
4. Enter his W-2 information

@deepaktigarg-gma 

[deepaktigarg-gma]

Thanks