Education credit for non-dependent?

Forum|Forum|6 years ago
June 1, 2019
3 replies
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My daughter turned 24 in Dec 2018 and is in her junior year in college. I pay all of her college expenses. She exceeded the dependent income maximum by just a few hundred dollars, so I can no longer claim her as a dependent, and as a result I don't qualify for the education credit. Can she claim that credit on her own return? Thanks for your help.

TurboTax Premier Mac

Best answer by Ashby

Yes, she can.

AshbyAnswer

Yes, she can.

dwhewlingsAuthor

She can claim the credit even though she did not pay her own college expenses? I paid them, not her. thanks

Bsch4477

Employee

Yes, she can claim it on her own.

RDKennedy01

My step son is also not a dependent- and has never lived with me, but I paid off his student loans.

Can I deduct this and which tax program should I use?

Hal_Al

Employee

Simple answer: No.

The event of paying off a student loan is not deductible by anyone.

Only the interest paid on a student loan is deductible. You cannot deduct that interest, even though you paid it, since you were not legally obligated to do so. There might be one exception: if your spouse co-signed the loan with his/her son and you file a joint a return with your spouse.

Your stepson may deduct the interest you paid, under the theory that you paying it was a gift to him and it really was him paying it.

If educational expenses were paid with loan money, in 2020, those expenses qualify for the student (or whomever claims him as a dependent) to claim an education credit