- If a parent claims the child as their dependent, the parent will claim the 1098-T and education expenses, regardless who paid.
- If the parent does not claim the child as their dependent, the student will claim the 1098-T and education expenses, regardless who paid.
- If the scholarships, grants, and other aid (except loans) is more than the tuition, fees, books, and supplies, the student will claim the 1098-T and education expenses, and will claim the excess aid as taxable income.
In order to claim deductions and credit for education expenses reported on a Form 1098-T you will need to upgrade to TurboTax Deluxe.
Once you upgrade, go to your Tax Home within TurboTax and navigate to Deductions & Credits.
Once there, from the list of all Tax Breaks, select Education, the fifth section from the top.
Expand the section and select "Expenses & Scholarships (Form 1098-T)", the second topic in the section. Once selected, you will be asked for all the information needed to claim education deductions and credits based on your 1098-T.
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