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isazavala
New Member

If both me and my parents paid for my tuition, who does claims the 1098-T

So both me and my parents chipped in to pay for my tuition and other expenses. My parents claimed me as a dependent. Can I still enter the higher education expenses or only they can?
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5 Replies
maglib
Level 11

If both me and my parents paid for my tuition, who does claims the 1098-T

@isazavala  Honestly either or both of you can.  Education expenses are considered that you both paid it.  You can only claim what was paid for school and only up to $10k in total between all of you  so you can't double dip and you must offset it by any scholarships.  Whatever way gives you the best benefit is the answer.   

There is many nuances even to the extent of characterizing portions of scholarships as income to students that are for room and board allow parents to claim more. That is a bit more complex though.

Normally best is parents to claim unless the parents are high income or extremely low income  and don't benefit from the deductions, only then would it make sense for the student.

So for a simple answer. Go with what gives your family the best turn out from the IRS.

 

I hope this was helpful.

**I don't work for TT. Just trying to help. All the best.
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Hal_Al
Level 15

If both me and my parents paid for my tuition, who does claims the 1098-T

Simple answer: Only your parents.  The rule is: whoever claims the student's dependency claims the tuition credit.  

 

But, taxes aren't simple.  While technically there is a provision that allows you to claim a 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 if he/she supports himself by working . He/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. 

 

 

isazavala
New Member

If both me and my parents paid for my tuition, who does claims the 1098-T

My parents did not claim me as a dependent. Do I take the credit then?

KrisD15
Expert Alumni

If both me and my parents paid for my tuition, who does claims the 1098-T

Whoever claims the student is the Taxpayer that can claim an education credit if an education credit is available. 

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Hal_Al
Level 15

If both me and my parents paid for my tuition, who does claims the 1098-T

Q.  My parents did not claim me as a dependent. Do I take the credit then?

A.  Maybe

 

Technically there is a provision that allows the student to claim a tuition credit. But,  from a practical matter it seldom works out.  An unmarried student, under age 24, is only eligible for the refundable portion of the American Opportunity Credit 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 is worth up to $2500 (AOTC shifts to all non refundable)

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