coordinating tax return between pareant and new college graduate

[masonparent]

Hello, Greetings!

My daughter graduated 2025 in May and started working in our city, she is 23 years old this year, her college is in a different city. I think I saw somewhere she can still be considered a full time student, is this true? I can still claim her as a dependent even though she started a new job in June. For the question did she support herself at least 50%, I can answer no since we did not ask her to pay out of her pocket last year even after graduation, she is living with us after graduation and still is so she did not need to pay extra rent and food etc.

We got both 1098-T with student name and SSN and 1099-Q to parent name and SSN, now there is a bug in TT that we can not enter room and board, can I not enter the 1099-Q and only enter 1098-T? This way I will get Life Time Learning credit. We already got the AOTC for four years.

I paid some tuition in Jan 2025 in the graduation year even though the tuition was billed in Dec 2024, so in the 1098-T only box 1 payment has number but no value in other boxes. TT now calculates correctly the Life Time Learning credit.

Do I need to enter anything in my daughter's return for 1098-T or 1099-Q or anything related to education? Does it matter in her return I still use student as her occupation? So in her return I only enter her W2 and some interest income? Did I miss anything? I am doing her return.

Thanks every one for your help!

[ReneV4 · Accepted solution]

Yes. You may still claim your daughter as your dependent because she was considered a student and was under the age of 24 at the end of 2025.

You are not required to enter Form 1099-Q, but should enter Form 1098-T on your tax return to get the Lifetime Learning Credit.

No. You do not need to enter anything on your daughter's return regarding Form 1098-T, nor Form 1099-Q, since you will be claiming her as your dependent.

No. You did not miss anything. If she only received Form W-2 and interest income, then that is all you need to input into her return.

[masonparent]

thanks so much for your answer!