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I have paid a good portion of two of my college student dependents tuition in 2021 and want to know if I can deduct that expense. I have and entered their 1098-T's but do not see a method to just claim the portion I paid. I feel like using the full 1098-T amounts is wrong especially considering they will need to claim this on their returns. In both cases, tuition was paid partially by them, some scholarships and I paid the majority. Any advice or guidance here would be greatly appreciated - have not done this before. I also want to claim books I purchased for them if I can...
Thanks much, Steve-
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@Steve429 said "I feel like using the full 1098-T amounts is wrong especially considering they will need to claim this on their returns".
No. They will not claim any tuition on their returns. Since they are your dependents, you are the only one that can claim a tuition credit for their education. You may claim both what you paid and what they paid. Typically, box 1 of the 1098-T (total tuition paid) minus box 5 (tax free scholarship) equals the amount that can be used for the tuition credit (there is no "deduction", only a credit). So, using the full 1098-T amounts is the correct way.
If you are claiming the college students as dependents, they are not able to use their education expenses on a dependent return. You will use the full amounts shown on Form 1098-T on your tax return.
As long as the students are considered full-time students in their first four years of college, under the age of 24 and a dependent, they will be eligible for the American Opportunity Credit. You can use the price of books and supplies as education expenses.
Here is a TurboTax help article about education expenses.
Awesome - thank you so much for the quick response.
Steve-
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