Who should file the 1098T form ?

My 19 year son started first year of college last September. He worked p/t job made of $5k his student loans are in his name..who should file the 1098T  parents or him?
  • Are withdrawals from UTMA accounts for education purposes taxable income?
If you are claiming him as dependent child the 1098-T would be entered on your (the parents) return.
  • Son is claiming his own self this year.. So he should file the 1098T then.  Does he have now file long form and deduct all his school needs? Does this give him a larger refund?
  • He would be filing either a 1040A or a straight 1040.  He may be eligible for the American Opportunity Credit for education.
  • This is all new to me..If he uses Turbo Tax will the guide him in the right direction with all deductions and credits?
You should be aware that there are restrictions on a student claiming himself and getting the refundable portion of the American Opportunity credit. It is usually best if the parent claims the credit rather than the student. He/she does not qualify for the (up to)$1,000 refundable portion of the American Opportunity Credit (AOC) if items 1, 2, and 3 below apply to him.

1. He was:
.....a. Under age 18 at the end of 2010, or
......b. Age 18 at the end of 2010 and his earned income was less than one-half of his support, or
......c. A full-time student over age 18 and under age 24 at the end of 2011 and his earned income was less than one-half of his support .
2. At least one of his parents was alive at the end of 2011.
3. He is not filing a joint return for 2011.

Furthermore, A  child of a taxpayer can  still be a “Qualifying Child (QC)” dependent, regardless of his income, if:
1. he is under age 19, or under 24 if a full time student for at least 5 months of the year, or   is totally & permanently disabled
2. He did not provide more than 1/2 his own support
3. lived with the parent (or was away at school) for more than half the year

So, it doesn't  matter how much he earned. What matters is how much he spent on support. Money he put into savings does not count as support he spent on him self.
The support value of the home you provided is the fair market rental value of the home plus utilities & other expenses divided by the number of occupants.
  • I want to use my daughter's the 1098T on my taxes but Turbo Tax won't lead me to this.  Where do I go?
Unlike a UTMA or UGMA account, the QTP (529 plan) is considered to be support provided by you, even if she is the recipient of the 1099-Q, under her Social security number. You are the "owner" of the account, she is the "beneficiary". Either of you may be the "recipient", depending on where the money is sent. When the money was sen directly to the school, she is the recipient. But, it is still considered your (the owner's) money.

But there are at least two questions in your follow up question:
1. The support money from a 529 plan is not considered her money  in determining whether she is still your dependent.
2, Even if it had been considered as coming from her (e.g. a UGMA account); it is not "earned income".  It would have worked against her in being able to claim the refundable portion of the AOC
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    • Hal Al - thanks for the info on restricitons for qualifying for the american opportunity credit, here a follow up question- to determine if my daughter provides more than half of her support, the college tuition for her is a big part of the expense, -- the tuition was funded from a 529plan that I had cerated for her, is the 529 fund considered my daughters money, ie part of supporting herself - or is it money from me, where I am supporting her?
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