1098-t for daughter

[Joemcgrath]

ok so i have my daughters 1098-t she has box 1 10623.39 and scolarships of 15250

i see on the email they sent it appears for both semesters it is much higher for tuition. why is it so low on 1098 

also she is my dependent when i enter 1098 on my tax it says she needs to claim like 4000+ as income. 

so i did her tax return she made 758 dollars in a job last year and when this is added to her tax return it then say i can not file head of household Is that correct because her income is now over 4758 dollars for 2023? She did not pay half of her living expenses. 

Also does that mean i do not file the 1098 on my tax return but enter it on hers? just to be correct to add the income to her return

[KrisD15 · Accepted solution]

No. 

If the student is your Qualifying Child, the income would not matter. 

(if she is your Qualifying Relative the income would matter, but a Qualifying Relative  would be if she was not related to you as your child. Since she IS your child, (under 24 and a student) as long as she did not supply more than half her own support, her being your dependent would not change)

If you are saying that the tuition paid in 2023 was more than 10,623, you'll have to ask the school why the 1098-T reports a different amount in Box 1 on the 1098-T.  Did the school bill for the 2023 winter term in 2022? 

If there was an error reporting the 1098-T, you can adjust the amount on the 1098-T screen. 

You can only claim what was paid in 2023. School years and calendar years cross, so look over the payments carefully. 

Since the 1098-T is showing 10,623 as tuition paid and 15,250 as scholarship received, 4,627 would be considered as income of the student. (DON'T FORGET ABOUT BOOKS AND SUPPLIES)

Does this seem to make sense? Did the student get extra money and perhaps pay room and board with the extra funds? 

Whatever the student received in scholarships that was not used for tuition, books, fees, and supplies is taxable income for the student. 

Yes, if the 1098-T does not generate a credit, it is not used on your return.

If the 1098-T generates taxable income, that is used on the students return. 

If the student earned 758 wages and needs to claim 4,627 scholarship income, the student should not be subject to a tax liability and might not need to file a return unless she expects a refund of any withholding on her wages. 

Scholarship income is sort of funny, not really earned, but doesn't count as unearned for the filing requirements of a dependent. 

Be sure to select "Someone else will claim me" for your daughter on your daughter's return in the "My Info" section. 

Be sure to claim your daughter as under 24, a student and not supplying more than half her support. 

If she was OVER 24 in 2023, she would not be your Qualifying Child. 

IRS Pub 501 page 4

[Joemcgrath]

when ypou say dont forget books does that get answered in the not required colum?  because i do not think she is required to buy them from the university i think she is allowed to buy from any student or university. the school sent a letter they payed for 2023 fall and spring semester at the end of december . total tuition 12858

room and board 14272  

money on scholor ships where split between the 2 semesters august payment and december payment

maybe the way it works is the rest of tuition will show next year this is her first year so there was nothing in 2022

on the letter they show indirect cost for books 1030 and miscilanious expenses of 2334

some for transportaion, fees for loans and other. 

what all can be added to the 1098-t form as not required costs?

[Joemcgrath]

also in her tax return it does say someone else will caim her. but it tosses in after the 1098-t a form like 8613 saying who and ssn i enter myself then it sayd i can not claim head of household

not sure why she is on my tax as daughter with birth date she is 18 and it states she does not pay half of living expenses on both forms mine and hers

[AmyC]

A child in college under age 24 can count as a dependent if you provided for them. See   IRS Worksheet for Determining Support and Whom May I Claim as a Dependent?

Normally, a kid goes to college and the parent claims them. I bet you mean form 8615 and you are doing the kiddie tax which requires your information on her tax return  for the correct taxing. See What is the Kiddie Tax?, Every situation is unique and we are glad to help with yours.

[Joemcgrath]

Yes that is the form it makes me fill out on her form at one point it keep telling me I could not file head of household but then I saved it and it now accepts hoh. Not sure why it is doing kiddy tax form it did not last year when she filed in high school. 

is that suppose to come up and is it ok for me to file hoh for her? She meets the qualifying daughter. I am just always looking to make sure I do not mess up and file incorrectly all I would need is fines and audits for a small tax return in long run.  Thank you for all the help

[DawnC · Accepted solution]

It is requesting the Kiddie Tax form for her this year because of the unearned income from the scholarship.    Yes, you can file Head of Household as long as her return says ''someone else will claim me''.   She is your qualifying child.  

[DawnC]

And the books are required for the classes, so they are additional educational expenses that she can add.   The books and required materials do not have to be purchased from the university.