Tuition Payments

[w961hmk]

I made college tuition payments in 2024.  I will file a paper copy return this year.  On what form and line must I report these payments?

[SabrinaD2]

To report college tuition payments made in 2024 and claim education credits on a paper tax return, follow these steps:

1. Obtain Form 1098-T: Get this form from your educational institution. It reports the amount of tuition paid.
2. Complete Form 8863: Use Form 8863 to claim the American Opportunity Tax Credit (AOTC) or the Lifetime Learning Credit (LLC). You can find the instructions here.
3. Attach Form 8863 to Form 1040: After completing Form 8863, attach it to your Form 1040.
4. Mail Your Return: Send your completed tax return to the IRS. You can find the appropriate mailing address based on your location here.

[w961hmk]

Thanks

[Hal_Al]

There's a new urban myth among college students that says they can get a $1000 from the government just for filing a tax form. For most of them, they simply aren't eligible. A full time unmarried student, under age 24, even if you don't qualify as a dependent, is only eligible for the refundable portion of the American Opportunity Credit if he supports himself by working. You cannot be supporting yourself on parental support, 529 plans or student loans & grants. It is usually best if the parent claims that credit. 

You cannot claim the (up to) $1000 refundable credit if you are, or can be, claimed as a dependent by someone else.

Reference: Line 7 instructions for form 8863.

https://www.irs.gov/instructions/i8863#en_US_2024_publink53002gd0e674

If you otherwise qualify, you don't report your "payments". You enter your adjusted qualified expenses (tuition, fees, books and other course materials) on form 8863, line 27. Then, follow the form to calculated your tuition credit. 

[w961hmk]

I am a head of household who paid $5,000 tuition for my 18 year old dependent son.  My MAGI is $103,000, and as such it appears that I am not eligible for the AOC nor the LLC.  Can I not deduct this $5,000 on my Schedule 1 so it is directly offset against my reported income on my 1040, or am I just basically out of luck on claiming the expense given my MAGI?

[Hal_Al]

Q. Can I not deduct this $5,000 on my Schedule 1 so it is directly offset against my reported income on my 1040?

A. No.

Q. Am I just basically out of luck on claiming the expense given my MAGI?

A. Yes.

There was a deduction a few years ago, but the MAGI was even lower than for the credits. 

[w961hmk]

Ok.  Thanks for your help.