topic 1098-T in Education

1098-T

Dragon2021 — Sat, 13 Mar 2021 23:47:09 GMT

My college daughter received a 1098-T with her scholarship amount and payments received (Cash & FAFSA loan amounts combined). When it comes to whose tax return this is filed under (parents' or child's), does it matter which one of us paid the cash portion and took the FAFSA loan? Can the parent claim on their tax return if FAFSA Loan is under child's name and cash was paid by child? Child is being claimed as a dependent on parents' tax return.

Re: 1098-T

Hal_Al — Sun, 14 Mar 2021 01:03:04 GMT

Q. When it comes to whose tax return this is filed under (parents' or child's), does it matter which one of us paid the cash portion and took the FAFSA loan?

A. No

Q. Can the parent claim on their tax return if FAFSA Loan is under child's name and cash was paid by child?

A. Yes. It doesn't matter who's money was used to pay the qualified expenses. If the student is the parent's dependent, only the parent can claim the tuition credit. The parent enters the 1098-T on their return.

Re: 1098-T

Dragon2021 — Sun, 14 Mar 2021 01:07:36 GMT

Thank you!