Daughter is In College

[uffbros]

My daughter is 19 and going to college full time and lives at home with me and her mother. She made $ 13728 working part time. She filed her taxes as single and can be claimed as a dependent on another persons taxes(Us). We had her file separate from us so she could get her refund back. Well she has a 10-98T from the school she goes to so I entered the info from it on her tax filing. Since I'm claiming her should that have gone on my tax filing? Will it change my bottom line? Thanks?

[Mike9241]

• If you claim a dependent, only you can claim the education credit. Therefore, you would enter Form 1098-T and the dependent’s other education information in your return.

once her return is fully processed it will have to be amended to eliminate the1098-T.

the 1040-X won't be ready until about mid-February

I don't know if this will create issues if you e-file.

[TomK2023 · Accepted solution]

If the student listed on the 1098-T is your dependent, enter the 1098-T on your return, even if your dependent paid the tuition.

The parents will claim all scholarships, grants, tuition payments, and the student's 1098-T on the parent's tax return and:

The parents will claim all educational tax credits that qualify.

The student must select the option for "I can be claimed on someone else's return", on the student's tax return. The student must select this option even  if the parent's qualify to claim the student as a dependent, and the parents do not claim them.

Your daughter will need to amend her return after it has been fully processed (she gets her refund) to remove the 1098-T information (or simply remove it if it gets rejected by the IRS, and then refile it).

You won't be able to amend your return yet because the IRS hasn't released Form 1040X, the amended return form.

Check back in late February, when Form 1040X is typically released.

If you prepared her original tax return using TurboTax:

1. Open the tax return you already filed.
2. Click on the link to amend your return (which won't be available until mid-to-late February).
3. The software will walk you through the process of filing the amendment.

[Hal_Al]

Q. Since I'm claiming her should that have gone on my tax filing? Will it change my bottom line? 

A. Yes, big time! It will add as much as $2500 to your refund. 

As others have said, you claim the tuition credit on your tax return, because she is your dependent.

If you haven't filed yet, you do not need to wait for her to amend for you to claim that.   You can file now and she can amend later. You can probably still e-file.

If your e-file  gets rejected (I don't think you will), then file on paper. You still won't be able to e-file after she amends. 

Review her tax return carefully. She may not need to amend. TurboTax most likely did not allow her to claim a tuition credit. Someone who checks the can be claimed as a dependent box does not qualify for the refundable portion of the credit.  She does not have enough income to have a tax liability to use the nonrefundable portion. 

There is a possibility, that some of her scholarship was taxable (typically if box 5 on the 1098-T exceeds box 1).  She will have to amend to increase the taxable portion, of the scholarship,  if you claim the tuition credit.  If this is the case, reply back for details. 

[uffbros]

Thanks for your reply...I checked her return and they didn't apply her 1098-T probably like stated in the other post that since we said that she can be claimed by another person TT didn't allow it to happen on here so no need to amend anything. Thanks again

[uffbros]

Thanks for your reply. I checked her return and it didn't let the 1098-T apply since I selected the option that said can she be claimed on another persons return. So I shouldn't need to amend her return. Thanks again.