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Level 2
February 21, 2022
Question

If I am not able to claim my daughter as a dependent as she supported herself in 2021, should I still use the 1098-T form I received or can she use it when she files?

  • February 21, 2022
  • 2 replies
  • 6 views
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2 replies

Level 15
February 21, 2022

You do not say why you cannot claim your daughter for 2021.    Is it because she was over the age of 23 at the end of 2021, or that she was not a full-time student in 2021?   If she was not a full-time student did she have more than $4300 of income in 2021--not counting Social Security?

 

If she cannot be claimed as your dependent then you cannot get an education credit for her.  You only get the education credit if you claim her as a dependent.

 

WHO CAN I CLAIM AS A DEPENDENT?

 

You can claim a child, relative, friend, or fiancé (etc.) as a dependent on your 2021 taxes as long as they meet the following requirements:

Qualifying child

  • They're related to you.
  • They aren't claimed as a dependent by someone else.
  • They're a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.
  • They aren’t filing a joint return with their spouse.
  • They're under the age of 19 (or 24 for full-time students).
    • No age limit for permanently and totally disabled children.
  • They lived with you for more than half the year (exceptions apply).
  • They didn't provide more than half of their own support for the year.

Qualifying relative

  • They don't have to be related to you (despite the name).
  • They aren't claimed as a dependent by someone else.
  • They're a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.
  • They aren’t filing a joint return with their spouse.
  • They lived with you the entire year (exceptions apply).
  • They made less than $4,300 in 2021.
  • You provided more than half of their financial support.

When you add someone as a dependent, we'll ask a series of questions to make sure you can claim them. There may be other tax benefits you can get when you claim a dependent.

Related Information:

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
Level 15
February 21, 2022

No, you can only claim education credits if you can claim your daughter as a dependent

 

She might be able to claim the expenses on Form 1098-T on her return.

 

Please be aware, a full-time unmarried student, under age 24, whether claimed or not, is only eligible for the refundable part of the American Opportunity Credit if he supports himself by working.  She cannot be supporting herself on parental support, 529 plans, or student loans & grants.  She usually must have actually paid tuition, not had it paid by scholarships & grants.  

 

 

Please see What education tax credits are available?  for additional information.

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Mched1Author
Level 2
February 24, 2022

I am not claiming her as a dependent as she paid for her own expenses for the majority of the year. 
What I now am trying to figure out is if she can use the student loans on her tax return. The loans were only used for tuition expenses.   She paid for everything else with the income from her job. I paid for her books. She is 23, will file individually and made a little over $10,000 for the year. 

Level 15
February 24, 2022

No, since she is under 24, she would only be eligible for the nonrefundable portion of the American Opportunity Tax Credit.  Since she only made $10,000, she has no tax liability to reduce with a non refundable credit.  A non refundable credit can bring your tax liability to $0, but can not cause you to get a refund.  

 

So, you could technically enter it on her return, but it would not give her any type of tax benefits.

 

Does she live with you?  When you say she paid for almost all of her own expenses, this would include housing, utilities, clothing, etc. If she only made around $10,000, lives with you and you are paying for the housing, books, utilities, food, etc. and providing more than half of her overall support, you could still claim her as a dependent on your return and you could claim the education credit.  

 

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