Student Loan Forgiveness

Stikman · Aug 25, 2022 2:21:59 PM

<P>Indications are my 22 year old daughter will be ineligible for $10,000 loan forgiveness only because I claimed her in 2021 as a dependent for the $500 "other dependents" credit. If this is the case should I file an amended return to remove her as a dependent then repay the $500 so she can claim the $10,000? (Probably should wait for details first though. </P>

Just hope this better clarifies the dependent thing.

The key word here is "QUALIFY". If the child/student qualifies to be claimed as a dependent on the parent's return, it *does* *not* *matter* if the parent actually claims them as a dependent or not. If the child/student *qualifies* to be claimed as a dependent, then the child/student must select the option for "I can be claimed on someone else's return". Doesn't matter if that "someone else" actually claims them or not.

The parent has a choice - claim the student/child or not claim them.

The student does *not* have a choice, and must indicate "I can be claimed on someone else's tax return" if they qualify.