Who can claim or who should claim the tuition information from a 1098-T? The parent who paid for the tuition; but can't claim the student as a dependent? Or, the student?

[Texas Roger · Accepted solution]

Whoever claims the student as a dependent on their tax return (student or someone else) is the one who can claim the qualified education expenses paid out of pocket or with loans for credit or deduction. It doesn't matter who actually paid the expenses. Whoever claims the student as a dependent is allowed to use the expenses paid on the students behalf to claim the credit. If the students meets the tests to be claimed as a dependent by someone else, the student can't claim themself. 

If the student received scholarship or grant awards that paid for  non qualified education expenses such as room and board, the student must enter that income on the students tax return.

[marthajane08]

I believe I understand, but I want to double-check so that I'm not taking a massive credit from somebody else. 

My husband is 32. He is employed. He is a full time student. His aunt paid his tuition. As far as I understand, he cannot be claimed as a dependent because of his marriage status, income, etc. Should we report the 1098-T? It sounds like she would not be able to benefit from this form if he is not a dependent. 

[MinhT1]

Even if his tuition is paid by his aunt, your husband can claim his education expenses and get the education credit.

The IRS says:

Expenses paid by others. Someone other than you, your spouse, or your dependent (such as a relative or former spouse) may make a payment directly to an eligible educational institution to pay for an eligible student's qualified education expenses. In this case, the student is treated as receiving the payment from the other person and, in turn, paying the institution. If you claim the student as a dependent on your tax return, you are considered to have paid the expenses.

Please see page 20 of this IRS publication.

@marthajane08