Question

Daughter no longer a dependent? Can she claim the 1098-T herself on 2020 tax return??

Forum|Forum|5 years ago
February 25, 2021
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My daughter graduated from a 4 year college May 10, 2020, completing her undergraduate degree. She moved out on May 29, and began renting an apartment on May 30, 2020. She started a job July 6, 2020 and has since been employed. On my previous tax returns, 2017, 2018 and 2019, I did correctly claim her as a dependent and included the 1098-T on my tax return. For 2020, I know that I can no longer claim her as a dependent, and that she must file a return claiming herself. Her income for 2020 (July-Dec) was $21,000. But, with regard to the 1098-T, does she claim the (tuition I paid) 1098-T on her tax return? Is this correct within the Tax Code? Are there exclusions to the aforementioned?

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D

DianeW777

Yes. Only the return where the student is claimed can use the education credits. Since she will no longer be your dependent and she is filing independently, then only she can use this on her tax return for 2020.

Who can claim an education credit?

There are additional rules for each credit, but you must meet all three of the following for both:

You, your dependent or a third party pays qualified education expenses for higher education.
An eligible student must be enrolled at an eligible educational institution.
The eligible student is yourself, your spouse or a dependent you list on your tax return.

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