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u2angel26
New Member

My parents paid for my daughter's college tuition and most of her books with a savings plan. She lived at home. Still enter the 1098-T? can i claim a credit?

I do claim her, she's 18.
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KrisD
Intuit Alumni

My parents paid for my daughter's college tuition and most of her books with a savings plan. She lived at home. Still enter the 1098-T? can i claim a credit?

You would claim her and her 1098-T.

You could claim the credit also, but what happened to the distribution from the savings plan?

Did your daughter get a 1099-Q?

If the funds went to your daughter because she is the beneficiary on the account, and she used it for education, you would need to either subtract the distribution from the education expenses before applying for a credit, or your daughter would need to report the earnings on the distribution on her tax return.

If your parents took the distribution, or if it is some other type of savings plan, they would report the earnings as income.

The taxpayer that claims the student claims the education expenses and applies for a credit. Anything paid to the school is considered paid by the student and claimed by the taxpayer claiming the student as a dependent.

Just check with your parents and your daughter to see if there is a 1099-Q in the mix that you need to know about.

 

CLICK HERE for IRS Pub 970 Tax Benefits for Education





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1 Reply
KrisD
Intuit Alumni

My parents paid for my daughter's college tuition and most of her books with a savings plan. She lived at home. Still enter the 1098-T? can i claim a credit?

You would claim her and her 1098-T.

You could claim the credit also, but what happened to the distribution from the savings plan?

Did your daughter get a 1099-Q?

If the funds went to your daughter because she is the beneficiary on the account, and she used it for education, you would need to either subtract the distribution from the education expenses before applying for a credit, or your daughter would need to report the earnings on the distribution on her tax return.

If your parents took the distribution, or if it is some other type of savings plan, they would report the earnings as income.

The taxpayer that claims the student claims the education expenses and applies for a credit. Anything paid to the school is considered paid by the student and claimed by the taxpayer claiming the student as a dependent.

Just check with your parents and your daughter to see if there is a 1099-Q in the mix that you need to know about.

 

CLICK HERE for IRS Pub 970 Tax Benefits for Education





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