Can my non-dependent claim education tax credit for college tuition I as a parent paid?

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May 28, 2021
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Can my non-dependent child claim state education tax credit for college tuition I as a parent paid?

TurboTax Online

Bsch4477

Employee

If you don’t claim the student then the student can claim the education credit even though you actually paid the expenses. But if you can claim the student and chose not to, the student must check the box saying that someone else can claim the student. And in that case the student will not receive the refundable portion of the education credit.

Hal_Al

Employee

Which state? In general, state rules are similar to federal, but you need to be sure.

Q. Can my non-dependent claim the federal education tax credit for college tuition I as a parent paid?

A. Yes. For the federal credit, it does not matter who paid it.

But, there are other rules. 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, even if you don't qualify as a dependent, 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.

Generally, you cannot claim a credit if you are, or can be, claimed as a dependent by someone else.

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 and he will not be eligible for a stimulus payment.

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

https://ttlc.intuit.com/questions/4531097-just-because-i-can-claim-a-college-son-daughter-do-i-need-too-they-live-on-campus-and-i-provide-rent-but-that-could-be-a-gift-i-don-t-get-any-benefit-claiming-them