Q. My parents claimed me as a dependent without using my 1098-T form, I will be filing my own taxes, can I use the 1098-T form on my taxes?
A. No. As a dependent, you are not eligible for a tuition credit. On the other hand, if you had excess scholarships (typically when box 5 of the 1098-T exceeds box 1), you would need to report the 1098-T to claim the scholarship income.
Your parents should file an amended return to claim the tuition credit, if they are otherwise eligible (their income is not too high).
While technically there is a provision that allows a student-dependent to claim a federal tuition credit, from a practical matter it seldom works out. A student, under age 24, is only eligible for the refundable portion of the American Opportunity Credit (AOTC) if he/she supports himself by working. She cannot be supporting herself on student loans & grants and 529 plans and parental support. It is usually best if the parent claims that credit.
If the student actually has a tax liability, there is a provision to allow him to claim a non-refundable tuition credit. But then the parent must forgo claiming the student as a dependent, and the $500 other dependent credit. The student must still indicate that he can be claimed as a dependent, on his return. This would only be the way to go, if the parents were not eligible for the credit, on their return.
