Hal_Al
Level 15

Education

@IvanC3 

Yes, you enter the 1098-T on your return and claim the education credit, even though your parents paid the tuition.

Although the general rule in taxes is: you must pay it to get the deduction, there is an exception for education.  Whomever claims the student's dependency gets the credit. Since you're claiming yourself, you get it.

 

Graduating in May usually means that 2020 was her 5th calendar year of college. There is a four time limit to claiming the American Opportunity Tax Credit (AOTC) on a student's education.  So, if you (or your parents) already claimed  4 AOTCs, you are prohibited from claiming it in 2020. You can claim the less generous (and non refundable) Lifetime Learning Credit (LLC).

Assuming you haven't claimed it 4 times, there's another issue: 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. You will be asked the earned income support question in the personal info interview.