Turbotax massachusetts state filing is allowing college tuition deduction on my daughters return even though I claim her as a dependent. Is this correct?

[paulbarbnelson]

TurboTax Massachusetts is allowing a deduction for tuition paid by me who claims her as a dependent. On her tax return, it is allowing the deduction for tuition. I also did her taxes with another program and it doesn't allow the tuition deduction on her return. I checked on Massachusetts website and I think it said she couldn't claim the deduction since she was a dependent on mine.

[MaryK1 · Accepted solution]

Unlike the federal taxes where a person claimed as a dependent is not allowed to claim the education credits, Mass does allow a person who is a dependent to claim the deduction. HOWEVER--Where a taxpayer makes qualified tuition payments to a college for the taxpayer's dependent, and both the taxpayer and his or her dependent file Massachusetts income tax returns, only the individual actually making the payments to the college is entitled to claim the deduction. In no case may a deduction for the same tuition expenses be taken by both the taxpayer and his or her dependent on both their individual income tax returns. However, the taxpayer and his or her dependent can each claim a deduction with respect to the portion of qualified tuition payments actually made by each person to the extent that the payments of each exceed 25% of his MAGI. 

Since Turbo Tax cannot compare both returns, it is your responsibility to make sure you enter the correct amount.