Filing as an unemployed student

[rkrchu2012]

I turned 25 and was considered a half-time student in 2019. I have no income, and I was awarded about $5700 in grants and the rest is in loans (the total on Box 1 of the 1098-T is about $13450). This money goes straight to my tuition (I don’t even see it). Should I file taxes even though I don’t have an income and don’t see this money, or if my parents claim me (since they support me regarding my other expenses) do they report this?

[MarilynG1]

You are correct that if you have no Earned Income, you would not qualify for an Education Credit.  

If your parents provide over 50% of your support (housing, food, medical, etc.) then they can claim you as their Dependent.  

Since you are over 25, you will be considered an 'Other Dependent' on their return.

However, since your 1098-T shows a Tuition amount of $13,450 and your Scholarships were only $5,700, they should enter your 1098-T in their return to claim an Education Credit.

The part of your Education Expenses that was paid with loans is considered to be paid by you.

Click this link for more info about How to Enter a 1098-T.

[rkrchu2012]

Thank you so much for your help. One other question, I will be the one paying back my loans, but I won’t pay them until six months after I graduate, which is over another year from now. Do my parents still input the 1098-T on their return, even though no one is paying anything yet? Will they even qualify for a tax credit? My parents do provide my support, but are not responsible for my tuition. Does it matter that my lack of income was used to acquire the school funding? Thank you. 

[rkrchu2012]

Sorry, I just saw the link you sent me. They will enter my 1098-T on their return. Thank you so much for your help.