Tuition Payment - College

[Mike2u]

I have a dependent in college.  We received a 1098-T as expected.  However for one quarter tuition I had to pay out of pocket ($2700) because he was not able to take enough classes to get the required12 credits.  If below 12 credits in a quarter the FASA loan will not kick in.   I am not sure if/where I can claim this. 

Any guidance will be appreciated.

[KathrynG3]

The first $10,000 of his expenses are used to calculate up to $2,500 for the American Opportunity Tax Credit.  He may be over that amount for the other three quarters anyway. You are still eligible to claim the credit if he was at least half-time for at least one academic period during 2020. Report your education expenses as paid.

To do this in TurboTax, follow these steps:

• In the search box inside TurboTax, enter education.
• Select the Jump to link in the search results
• Complete the interview. You will need Form 1098-T.

For more information, see: Who is eligible to take the American Opportunity Tax Credit?

[Hal_Al]

You don't need to do anything special. Everything you need is on the 1098-T. 

Box 1 is everything paid to the school, whether by you, by scholarships or by loans.  Box 5 is how much of the box 1 amount that was paid by scholarships (but not loans).  As long as box 1 is more than box 5, you  may count the difference towards claiming the tuition credit, even if you did not pay the full difference.  

The person who claims the student, as a dependent, gets to claim the full amount, even if they did not pay the full amount.

If the difference is less than $4000, reply back for further instructions. Tell us the amount in box 1 and box 5 and any additional qualified expenses paid: books, computers, other course materials,  but not room & board.