You would claim the 1098-T for your dependent child on your tax return to receive the Lifetime Learning Credit. It is a non-refundable credit which means it will only reduce the tax that you owe, not add to your refund. That is assuming that your dependent is in their fifth year of school as a graduate student.
See the information below:
American Opportunity Tax Credit (AOTC)
You can use this credit for the first four years of college when working towards a degree.
- Maximum credit is $2,500 per eligible student.
- Must be enrolled at least half time for at least one semester during the tax year.
- Up to $1,000 can be refunded to you.
Lifetime Learning Credit
There is no limit on the number of years you can use this credit for undergraduate, graduate and professional degree courses, including ones to improve job skills.
- Maximum credit is $2,000 per tax return.
- Can be used when you're only taking one class.
- You don't need to be working towards a degree.
- None of the credit is refundable.
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