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Level 1
Jun 5, 2019 6:22 PM UTC
Solved

Higher education credit

Can we get qualified higher education credits on our return if the person going to college can be claimed as a dependent on our return and filed his own return?
Answer
Jun 5, 2019 6:22 PM UTC

If you claim an exemption on your tax return for an eligible student who is your dependent, treat any expenses paid (or deemed paid) by your dependent as if you had paid them.

If you don't claim your dependent's exemption for a dependent who is an eligible student (even if you're entitled to claim the exemption): only the dependent can claim the credit on their own return. 

3 replies

Answer
Jun 5, 2019 6:22 PM UTC

If you claim an exemption on your tax return for an eligible student who is your dependent, treat any expenses paid (or deemed paid) by your dependent as if you had paid them.

If you don't claim your dependent's exemption for a dependent who is an eligible student (even if you're entitled to claim the exemption): only the dependent can claim the credit on their own return. 

Level 2
Mar 14, 2021 1:36 PM UTC

ChrisJ: thanks for your answer.  I'm not a dependent on anyone else's return and had income for 8 months last year before starting an MBA program.  So I'm able to deduct "higher education expenses"?  thanks again.

Hal_Al
Level 15
Level 15
Mar 14, 2021 2:22 PM UTC

@corgi 

Grad school is not eligible for the more generous American Opportunity credit (AOTC) but is eligible for the non refundable Lifetime Learning Credit (LLC). The LLC is 20% of tuition, up to $10K.  A non refundable credit can only be used to reduce an actual tax liability.