Education

Your 20-year old kid is your dependent, so you claim him or her on your return. Take a look at her W-2 form, if there is no federal or state income tax (check Box 2 and Box 17 for tax withheld), he or she does not have to file a tax return.

If she received a Form 1098-T, you report it on your return. If the 1099-Q shows that you are the recipient (you took money out of the 529 plan and then used the money to pay for his/her college, then you are the recipient.), you also need to enter the 1099-Q form on your return. 

If you are not the recipient of the 1099-Q form, you leave the form out of your return. 

Here is how to enter Form 1099-Q:

1. Open or continue your return
2. Select Federal and then Deductions & Credits
3. Scroll down to the Education section under All tax breaks
4. Select Show more and then select Start or Revisit next to ESA and 529 qualified tuition programs (Form 1099-Q)
5. Follow the screens to enter your info.

To claim the American Opportunity Credit:

Here's how to enter your 1098-T:

1. Open or continue your return
2. Select Search and search for 1098t 
3. Select the Jump to link in the search results
4. On the Do you want to enter your higher education expenses? screen, answer Yes
5. Answer Yes to Did you get a 1098-T for the year? and Continue
6. On the next screen, you can choose how you'd like to add your 1098-T. You can upload a digital copy from your computer or type it in yourself. Select which option you'd like and Continue
7. If you need to enter a 1098-T for someone else, continue through the screens until you get to the Your Education Expenses Summary screen, then select Add A Student

For more information, please refer to this help article: Where do I enter Form 1098-T?