Q. Should I just ignore this part of the software?
A. No. It's telling you that you're doing it wrong.
You say" it's "indicating that if no one is on the list is the dependent student that I cannot claim the education credit"
That's correct you are not allowed to claim the education credit if the student is not your dependent. But, claiming the education credit and claiming the 529 plan earnings exclusion are two different things
You go on to say: "I do know that my independent son is taking the education credit on his own tax return"
Two people (the parent and the student) cannot both claim the education credit on the same student
You can both enter the 1098-T. You, to calculate the taxable portion, if any, of the 520 earnings distribution and him to claim the credit. But, one of you must adjust the expenses you enter.
Provide the following info for more specific help:
- Are you the student or parent.
- Is the student the parent's dependent.
- Box 1 of the 1098-T
- box 5 of the 1098-T
- Any other scholarships not shown in box 5
- Does box 5 include any of the 529/ESA plan payments (it should not)
- Is any of the Scholarship restricted; i.e. it must be used for tuition
- Box 1 of the 1099-Q
- Box 2 of the 1099-Q
- Who’s name and SS# are on the 1099-Q, parent or student (who’s the “recipient”)?
- Room & board paid. If student lives off campus, what is school's R&B on campus charge. If he lives at home, the school’s R&B “allowance for cost of attendance” for student living with parents.
- Other qualified expenses not included in box 1 of the 1098-T, e.g. books & computers
- How much taxable income does the student have, from what sources
- Are you trying to claim the tuition credit (are you eligible)?
- Is the student an undergrad or grad student?
- Is the student a degree candidate attending school half time or more?
