I paid college tuition fees almost 25K in 2021 for my cousin? Can i claim in tax returns ?

Not unless he or she is your dependent. 

not my dependent

That depends on if you claim your cousin as your dependent. 

 

If you DO claim your cousin as your dependent, then YES you claim those expenses. 

 

If you do not claim your cousin as your dependent, then NO you don't.

 

Whomever does claim the student, can claim the expenses you paid for a credit on their return. 

 

 

 

 

I have a similar situation, i paid tuition fees of 30K+ for my cousin. Have the following questions

1. Can i claim him as dependent while he can file his taxes independently?

2. What all details need to be furnished to claim cousin as dependent

3. Any other guidance or instructions

 

It depends. Your cousin must meet the following requirements to claim him on your tax return as qualifying relative.

 

• He cannot be claimed as a dependent on someone else’s tax return
• He must be a U.S. citizen, resident alien, national, or a Canadian or Mexican resident
• He cannot file a joint tax return with his spouse if married
• He must have lived with you for the entire year
• He must have made less than $4,400 in 2022
• You must have provided more than half of his financial support.

TurboTax will ask you a series of questions when you add your cousin as a dependent to ensure that you claim him. Make sure that you have his SSN and birthdate available.

 

For more information, please refer to the TurboTax Help article Who can I claim as my dependent?

A cousin (even a first cousin) is not considered "closely related" for tax purposes.  Hence, the additional requirement that he live with you all year to qualify as your dependent.

 

If he does not qualify as your dependent, he (or whomever does claim him as a dependent) may claim* the tuition credit based on the tuition you paid. 

 

Although the general rule, in taxes, is that you must be the one making the payment, to get the deduction or credit, there is an exception for education.

 

*One caveat:  A full time unmarried student, under age 24, even if he doesn'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  support from relatives, 529 plans or student loans & 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.

Reference: Line 7 instructions for form 8863. https://www.irs.gov/instructions/i8863