topic 1098-T for dependent in Education

1098-T for dependent

sheley77 — Mon, 08 Mar 2021 00:59:52 GMT

My daughter will file her own tax return, but we still claim her as a dependent. Do we input 1098-T on our return or hers?

Re: 1098-T for dependent

KrisD15 — Mon, 08 Mar 2021 01:19:06 GMT

You will enter the 1098-T, all other education expenses, such as books and supplies, as well as the 1099-Q if you have one.

The 1099-Q reports distributions from a 529 college savings account.

Enter dependent information first, the 1099-Q if you have one, then the 1098-T so that the TurboTax program can do the math.

If the forms generate an education credit (more expenses than scholarships) you get the credit on your return.

If the forms generate taxable (potentially) income, the student claims the income on the student's return if they are required to file.

Be aware that when you get to the "Maximize My Tax Break" screen, the program MAY suggest the student claim income in order to free up expenses if this results in a better credit for you.

Afterwards, you can type letme into the search-box and click the "Jump to letme" link.

Here you can change the credit you are claiming if you so desire.

Re: 1098-T for dependent

Hal_Al — Mon, 08 Mar 2021 03:02:02 GMT

Q. Do we input 1098-T on our return or hers?

A. Yours.

The tuition credit goes with the student's dependency. So, if she is your dependent, you enter the 1098-T, on your return, to claim the tuition credit.

However, if some of her scholarships are taxable, she will need to claim that income on her return. Entering the 1098-T, on her return makes that reporting easier. So, it's possible that both parent and student will need to enter the 1098-T, possibly with adjustments.