Q. See how you feel about changing numbers on the 1098-T to report to the IRS to qualify for a credit. Definitely I would be uncomfortable, and I am just trying to avoid a blunder on my declaration or hers
A. Changing the numbers is just a short cut. You can get the same correct results by entering all the correct info and carefully following the TT interview. The short cuts only reduce the risk of mistakes. This discussion is getting long and is now spread over two threads. I may now be repeating info. The 1098-T is only an informational document. The numbers on it are not required to be entered onto your tax return. The modified 1098-T that you enter in TT is not sent to the IRS.
Q. I had considered that, let her file as independent.
A. That's not optional. If she qualifies as you dependent, she cannot claim her self. But If the student actually has a tax liability, there is a provision to allow her 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. At her income level, the family does not come out better doing that.
Q. Could I just not include her 1098-T on my report, and include it as it is on hers?
A. Yes, but it will cost your family about $2000.
Q. Since I am not claiming AOC, would it be bad if the 1098-T is on both reports?
A. If you are not claiming the AOC, you have not reason to enter the 1098-T on your return. The "bad" will only be the frustration dealing with the TT interview which will work to give you the AOC.
I'll post another reply using your actual numbers.
