Question

Can I include my child's 1098-T if I don't claim him as a dependent?

Forum|Forum|6 years ago
February 11, 2020
1 reply
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I have NY 529 Education Savings accounts for both of my children. They are both attending college and I have made distributions out of these accounts to pay for their education. I only claim one of the children as a dependent. Can I enter 1098-T information (for purposes of receiving credit) for the child that I do NOT claim as a dependent?

DawnC

Employee

No, you can only take the education credit for the child you claim as a dependent. The student that you do not claim should report the 1098-T on their return.

The 1099-Q is reported on the recipient's tax return (the person whose Social Security number is on the form). If the funds went directly to the school, consider the student as the recipient, and if the student is your dependent, you should enter the 1099-Q on your return.

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Hal_Al

Employee

Q. Can I enter 1098-T information (for purposes of receiving credit) for the child that I do NOT claim as a dependent?

A. No. The child must be your dependent to claim a tuition credit or deduction.

But, if you are the recipient of a 1099-Q, you may claim some of the expenses on the 1098-T, to get an exclusion of some of the earnings (box 2 of the 1099-Q) from being taxed. If the student (or other parent) is claiming the credit, this will take some coordination between the twoof you, as "double dipping" is not allowed.

Total qualified expenses (including room & board) less amounts paid by scholarship less amounts used to claim the Tuition credit equals the amount you can use to claim the earnings exclusion on the 1099-Q.
Example:
$10,000 in educational expenses(including room & board)

-$3000 paid by tax free scholarship

-$4000 used to claim the American Opportunity credit (on the student’s return)

=$3000 Can be used against the 1099-Q

Box 1 of the 1099-Q is $5000

Box 2 is $600

3000/5000=60% of the earnings are tax free

60%x600= $360

You have $240 of taxable income (600-360)