HOW CAN I CLAIM COLLEGE EXPENSES IF WE CANNOT CLAIM OUR DAUGHTER AS A DEPENDANT?

[BREWMEISTER61]

FOR RESIDENCY PURPOSES AT UTAH STATE UN IV, THEY REQUIRE US TO NOT CLAIM OUR DAUGHTER AS DEPENDANT ON 2020 RETURN. HOW THEN CAN WE GET ANY DEDUCTION/S FOR COLLEGE EXPENSES IN 2020?

[ToddL99 · Accepted solution]

Unfortunately, you have to make a choice between getting in-state tuition rates and claiming your daughter as a dependent for tax purposes (this is not uncommon).

You can't claim the American Opportunity Credit or Lifetime Learning Credit for anyone that is not listed as a dependent on your return. 

You can claim a deduction for student loan interest if:

• You paid interest on a qualified student loan in tax year 2020.
• You or your spouse, if filing jointly, can't be claimed as dependents on someone else's return. (You can take the deduction as a student. If you're a parent making payments on your dependent student’s loan, you can also take the deduction).
• You're legally obligated to pay interest on a qualified student loan.
• Your filing status isn't married filing separately.
• Your MAGI is less than a specified amount, which is set annually.

[BREWMEISTER61 · Accepted solution]

Thank you Todd for your information! I had a feeling that was the case...(choose in-State Tuition availabilities or keep her as a Dependent with associated College expense deductions).  Your reply was wonderfully prompt too! 

Regards, 

Greg 

[ToddL99]

I went through the same thing a number of years ago.