Q. My daughter received a 1098-T with her name and social on it, but we paid the tuition. Can we claim that on our taxes? We are claiming her as a dependent.
A. Yes. Whoever claims the student as a dependent is the one who is allowed to claim the tuition credit. Enter her 1098-T, on your return, to do so.
Q. I know I read that you said we didn't have to report a 1099-Q. But, I don't want any problems with the IRS.
A. There is no risk of IRS problems by not reporting a 1099-Q. That's because the result is the same as when you do enter it: nothing is reported on your actual tax return. When your expenses balance out with the 1099-Q, you don't report it even when you try to report it. Entering it, just risks mistakes.
That said; you are allowed to enter the 1098-T on both her tax return and yours. But you have to adjust for any tuition you claimed for the credit, on her return. For such a small amount on the 1099-Q, you probably have enough book, computer and room and board to cover, so you may not even need the tuition. After entering the 1098-T (on her return), you will be asked to enter book expenses. That will get you to the room and board screen.
