Parent Tuition Payments

[tenacjed]

I am the parent.  I allow my son to file as non-dependent.  I pay tuition but the 1098-T is in my son's name - do I claim the deduction?

[DoninGA]

You cannot claim any education credits on your tax return if the student is not your dependent.

[rjs]

@tenacjed 

You cannot choose whether your son is your dependent or not. The IRS has rules to determine who is a dependent. You cannot "allow" your son to file as a non-dependent if he is a dependent according to the IRS rules.

You can use Whom May I Claim as a Dependent? on the IRS web site to determine whether you can claim your son as a dependent. Or see "Dependents" starting on page 11 of IRS Publication 501.

If, according to the IRS rules, you can claim your son as a dependent, then he must check the box on his tax return indicating that someone can claim him as a dependent, whether or not you actually claim him on your tax return.

[NCperson]

@tenacjed this subject is QUITE confusing.

Simplied rules: 

1) the 1098-T is in your son's name.  If Box 5 exceeds Box 1, that difference is taxable income TO YOUR STUDENT.  He must report it on his taxes; there is nothing for you to report. 

2) if Box 1 exceeds Box 5, that is the basis of the American Opportunitites Tax Credit and goes on YOUR tax return.  However, to be eligible for the tax credit, one of the requirements is that you claim your child.  There is no deduction; it's only a credit if you are eligible.  It would no on YOUR taxes. 

3) as stated by others, if you CAN claim your child, it is your decision whether to do so or not.  The IRS does not care.  But from your child's perspective, he is to answer the question CAN someone claim him, not DID someone claim him.  If you can claim your son. but decide not to, he still has to indicate someone can claim him on his tax return.  See the difference? 

4) if you can claim him and do not claim him, he is able to claim the AOTC tax credit if Box 1 exceeds Box 5.  Without going into the details, that is normally very hard for him to do under the rules, but possible.  If that is your objective, post back and I will explain why it is unlikely to be viable.  

 does that help? 

[Hal_Al]

Confirming what others have said:

1. You cannot claim the education credit if the student is not claimed as your dependent.  If he is your dependent, you can claim the tuition credit, even though the 1098-T is in his name. 

2. You claiming your qualified dependent is optional.

3. But the dependent claiming himself is not optional. 

There is a rule that says IF somebody else CAN claim him as a dependent, he is not allowed to claim himself. If he has sufficient income (usually more than $14,600, $15,750 for 2025), he can & should still file taxes. In TurboTax (TT), he indicates that somebody else can claim him as a dependent, at the personal information section.  TT will check that box on form 1040.

With the tax law change, effective 2018 and recently renewed, most students will get the same refund (or pay the same amount of tax) whether they claim themselves or not. The personal exemption has been eliminated and the standard deduction increased. However, he can only qualify for an education credit, if he is not claimed as a dependent.  Even  then, there are restrictions on how much  ed credit he can claim*.

There are two types of dependents, "Qualifying Children"(QC) and Other ("Qualifying Relative" in IRS parlance even though they don't have to actually be related). There is no income limit for a QC but there is an age limit, student status, a relationship test and residence test.

A child of a taxpayer can still be a “Qualifying Child” (QC) dependent, regardless of his/her income, if:

1. He is under age 19, or under 24 if a full time student for at least 5 months of the year, or is totally & permanently disabled
2. He did not provide more than 1/2 his own support. Scholarships are excluded from the support calculation. It doesn't matter how much he earned. What matters is how much he spent on support. Money he put into savings does not count as support he spent on himself.
3. He lived with the parent (including temporary absences such as away at school) for more than half the year

*Here's a post on the five main points (see #2) on the  1098-T (See 2nd reply, at the post):

https://ttlc.intuit.com/community/college-education/discussion/i-need-help-with-1098t-section-colleg...