My daughter is 24 in college. He received Financial Aid but also took out student loans. She lived with us all year. Can we claim? What about the education credit?

[DoninGA]

Was she age 24 on 12/31/2017?  Did she have gross income in 2017 of $4,050 or more?

[buddykelley1122]

She was 24 on 12/31/17, and had no income but student and parent plus loans.

[buddykelley1122]

What about the 1098-T form my daughter got in her name?

[DoninGA]

The form 1098-T is entered on your tax return since she is a dependent.

[buddykelley1122]

Thank you

[DoninGA · Accepted solution]

You should be able to claim her as a dependent under the Qualifying Relative rules provided she meets all the requirements.  If you do then you would enter all the education expenses for the dependent on your tax return.

To be a Qualifying Relative -

1. The person cannot be your qualifying child or the qualifying child of any other taxpayer. A child is not the qualifying child of any other taxpayer if the child's parent (or any other person for whom the child is defined as a qualifying child) is not required to file an income tax return or files an income tax return only to get a refund on income tax withheld.

2. The person either (a) must be related to you or (b) must live with you all year as a member of your household. 

3. The person's gross income for the year must be less than $4,050 (social security does not count) in 2017

4. You must provide more than half of the person's total support for the year.

5. The person must be a U.S. citizen or a U.S., Canada, or Mexico resident for some part of the year.

6. The person must not file a joint return with their spouse.