1098-T

[busdrvr]

Can  I split the payments from a 1098-T between my (the parents tax form) and my daughter's?  for example $4000 on my form to maximize and qualify for the American Opportunity credit and $1500 on my daughters to help her tax situation.  If so how is it recorded and what paper trail should I keep on file?

[SweetieJean]

No.  See this:

Solved: Can I split the 1098t between two returns? (intuit.com)

[DanaB27]

No, you cannot split the expenses from Form 1098-T. If you claim your daughter as a dependent then only you can claim the education credits.

Please see What education tax credits are available? for additional information.

[Hal_Al]

Yes and No.

No, your daughter cannot also claim a tuition credit. Only you can claim the tuition credit, because she is your dependent.

However, she can still enter the 1098-T, on her return, if she needs to claim expenses to keep her scholarship tax free (or reduce the amount that is taxable) or offset a 529 distribution, in her name.  In her interview, she will encounter a screen "Amount used to calculate education deduction or credit." Be sure the amount in that box is $4000. 

[busdrvr]

Thanks.  I have already entered my daughter's 1098-T on my (the parent) tax form.  $5500 from box 1  payments and $1500 in  box 5 scholarships.  and used only $4000 for the education credit.  can i also enter it into my daughters tax return with the hope of using the remaining $1500 from box 1 to offset taxes that she owes (from unearned income from some capital gains on an UGMA).?  Also,

Can I claim the cost of a computer for my daughter , on my daughters taxes? if so where is that entered?

THANK YOU ALL FOR YOUR HELP.

[Hal_Al]

Q. Can i also enter it into my daughters tax return with the hope of using the remaining $1500 from box 1 to offset taxes that she owes (from unearned income from some capital gains on an UGMA).? 

A.  Yes and no. No, in your case.  One student means one tax credit and you've already claimed that, on your return.  So not it cannot help reduce taxable income from a UGMA account.  See answer to next question, for  when yes might be the right answer.  

Q. Can I claim the cost of a computer for my daughter , on my daughters taxes? 

A. Yes and No.  Although a computer is (almost always) a qualified expense, for the education credit, only one credit per student  is allowed and you already claimed it.  However the computer is also a qualified expense for tax free scholarship, so you (usually) might want to enter it (answer yes when asked if you have book expenses).  But, in your case, you student already has $1500 of "left over" tuition to offset her scholarship and keep it tax free.  But, again, those educational expenses are no help against UGMA unearned income. 

[NCperson]

also, be careful how you enter everything as you mention unearned income and if that exceeds $2200, it MAY trigger the 'kiddie tax' (also depends on her earned income)

just so everyone is clear on your circumstance and what you did..

1) what number is in Box 1 on form 1098-T?

2) what number is in Box 5 on form 1098-T.

(just seems too coincidental that it really was a $4000 difference)

3) what did you enter on your tax return for Box 1 and Box 5, respectively (should net to $4000). 

4) what did you enter on your daughter's tax return? (if anything)

[busdrvr]

1) Box 1  $5594.10

2)  Box 5  $1500

3)  Not sure which form you are referencing with.  " what did you enter on your tax return for Box 1 and Box 5, respectively (should net to $4000). "  I completed form 8863 for two students one with approximately  $17000, and the other student with the above listed numbers.  they both qualified for an education credit using the first $4000 of tuition to earn $2500 in tuition credits. (100% of the first $2000, and @20% of the next $2000= $2500)

4) I DID NOT enter anything for either daughter.  nothing for the daughter that paid $17000 in tuition because she did not have to pay tax this year- she did not have as much unearned income as the second daughter.  Nothing for the daughter in question because it appears based on the wonderful responses I am getting , that any "balance" remaining from the tuition paid ($5594.10 - the $4000 used for the education credit  $1594.10 cannot be used to offset the  taxes owed from approximately $3200 in unearned income.)

[busdrvr]

Thank You!  I think that sums up what my thought process is but I wanted to make sure I wasn't missing something.