1098-T

Forum|Forum|5 years ago
July 14, 2020
1 reply
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Can the parent forego claiming the student as a dependent and allow the student to claim the 1098-T. I pay for my childs education but am phased out and unable to claim the 1098-T. I am willing to forego the $500 dependent benefit in order to allow my child to file separately and get the $1000 tuition credit refund.

Hal_Al

Employee

No.

There's a new urban myth among college students that says they can get a $1000 from the government just for filing a tax form. For most of them, they simply aren't eligible. A full time unmarried student, under age 24, is only eligible for the refundable portion of the American Opportunity Credit if he supports himself by working. You cannot be supporting yourself on parental support, 529 plans or student loans & grants. You usually must have actually paid tuition, not had it paid by scholarships & grants. It is usually best if the parent claims that credit. If the parent isn't eligible, nobody gets it.

If the student actually has a tax liability, there is a provision to allow him to claim a non-refundable tuition credit. But then the parent must forgo claiming the student as a dependent, and the $500 other dependent credit. The student must still indicate that he can be claimed as a dependent, on his return.

https://ttlc.intuit.com/questions/3936383-tuition-gift-to-children