topic 1098T in Education

1098T

Rl31991026 — Sun, 14 Feb 2021 17:36:34 GMT

My daughter is a full time student and i claim her on my taxes, she received a 1098-T from her college, which is in her name, can i claim this on my taxes?, she worked part time over the summer and is filing her own taxes but she cannot claim this form because i am claiming her.

Re: 1098T

DanaB27 — Sun, 14 Feb 2021 17:53:15 GMT

Yes, you can claim the 1098-T on your tax return because she is your dependent.

Your daughter can't claim education credits on her return because she is your dependent

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

Re: 1098T

Chung11358 — Sun, 14 Feb 2021 18:04:20 GMT

My daughter is over 20 of age and she full time student and I don't know which one is better for her is be dependent or independent, she has part time job. can I put her on independent for all her deduction.

Re: 1098T

DanaB27 — Sun, 14 Feb 2021 21:53:10 GMT

If she meets the requirements to be your dependent then she is your dependent, even if you decide to not claim her, and she will have to indicate on her return that she can be claimed by some else.

Qualifying child requirements:

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.

Please see Who can I claim as my dependent? for additional details.

@Chung11358

Re: 1098T

Hal_Al — Sun, 14 Feb 2021 21:26:43 GMT

@Chung11358

It's not optional. If she qualifies as your dependent, she cannot claim herself.

A child of a taxpayer can still be a “Qualifying Child” (QC) dependent, regardless of his/her income, if:

He is under age 19, or under 24 if a full time student for at least 5 months of the year, or is totally & permanently disabled
He did not provide more than 1/2 his own support. Scholarships are considered third party support and not as support provided by the student.
He lived with the parent (including temporary absences such as away at school) for more than half the year

So, it doesn't matter how much he earned. What matters is how much he spent on support. Money he put into savings does not count as support he spent on him self.

The support value of the home, provided by the parent, is the fair market rental value of the home plus utilities & other expenses divided by the number of occupants.

The IRS has a worksheet that can be used to help with the support calculation. See: http://apps.irs.gov/app/vita/content/globalmedia/teacher/worksheet_for_determining_support_4012.pdf

Furthermore, there is a rule that says IF somebody else CAN claim him as a dependent, he is not allowed to claim himself. If he has sufficient income (usually more than $12,400), he can & should still file taxes. In TurboTax, he indicates that somebody else can claim him as a dependent, at the personal information section. TT will check that box on form 1040.

Even if he had less, he is allowed to file if he needs to get back income tax withholding. He cannot get back social security or Medicare tax withholding.

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Furthermore, there's a new urban myth among college students that says they can get a $1000 from the government just for filing a tax form. For most of them, they simply aren't eligible. A full time unmarried student, under age 24, even if you don't qualify as a dependent, is only eligible for the refundable portion of the American Opportunity Credit if he supports himself by working. You cannot be supporting yourself on parental support, 529 plans or student loans & grants. You usually must have actually paid tuition, not had it paid by scholarships & grants. It is usually best if the parent claims that credit.

You cannot claim a credit if you are, or can be, claimed as a dependent by someone else.