Q. Can I claim college or education expenses if my parents paid for them?
A. Simple answer: yes. Although the general rule, in taxes, is that you must be the one making the payment, to get the deduction or credit, there is an exception for education.
Q. Can I get credit in my tax filing?
A. Yes, if you otherwise qualify. The fact that your parents paid the expenses does not disqualify you.
But, other factors may disqualify you. You say your parents did not claim you as dependent. But, if they could have claimed you as a dependent, you would be disqualified for the refundable portion of the most generous education credit (the American Opportunity Credit), unless you are over age 23. If your parents forego claiming you as a dependent (when they are allowed to claim you), you are only eligible for a non refundable credit. That is, you only get enough credit to reduce your actual tax liability, if any. The credit is worth up to $2500. Essentially, if your W-2 is less than $12,950, you will not get any credit and your parents will lose the $500 other dependent credit. If you are claimed as a dependent, on their return, they can claim the education credit of up to $2500 (unless their income is too high to qualify).
