HelloWhat is preferred: should I file the son's undergrad tuition with my income tax returns or student tax returns to maximize benefit?

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February 12, 2025
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Hello What is preferred: should I file the son's undergrad tuition with my income tax returns or student tax returns to maximize benefit?

KrisD15

If the student is your dependent and you claim him-

Only you report the 1098-T if it results in a education credit

Only he reports any taxable income if it shows income.

If more education expenses were paid than the tax-free aid/scholarship he received, you get the credit.

If more tax-free aid/scholarship was received than education expenses were paid, he claims the excess as income.

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Hal_Al

Employee

It's not usually optional. The tuition credit goes with the student's dependency.

While technically there is a provision that allows your student-dependent to claim a federal tuition credit, from a practical matter it seldom works out. A full time student, under age 24, is only eligible for the refundable portion of the American Opportunity Credit (AOTC) if he/she supports himself by working. She cannot be supporting herself on student loans & grants and 529 plans and parental support. It is usually best if the parent claims that credit.

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. This is worth up to $2500 (AOTC shifts to all non refundable)

deepaktigarg-gmaAuthor

Hello

So my son is less than 24 years old and is doing undergrad. He did not receive any financial aid but he has to file his taxes separately as his income is more than $10K for 2024 (he has to file separately right?). We did not have 529 plan. All money was paid by me. So should i claim on my taxes, but it seems there is no tax benefit?

Please advise

Thanks and appreciate it.

KrisD15

Yes, he needs to file if he has income he needs to report, however, as posted in the answer below, he may noy be required to file based on his income.

He will select "Yes, someone else can claim me" and "Yes someone else will claim me" in the Personal Info section.

Yes, there might be a significant tax benefit to you if you claim the student (student did not supply more than half his own support) and you claim the expenses for a credit.

If the student did not get a scholarship or other financial aid, and you paid the education expenses, the student should have received Form 1098-T showing what was paid to the school. The student may need to get a copy online.

Form 1098-T is used to report the education expenses (Tuition, Fees, Books and Supplies) which are used to apply for an education credit by the taxpayer that claims the student.

This section is located under

Deductions & Credits

Education

IRS Pub 970 explains more

[Edited 2/14/2025 7:15pm PST]

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Uther

If your son is your dependent, the education credit MUST be on your return.
If he's not your dependent, it cannot be on your return.

deepaktigarg-gmaAuthor

This does let me add his W2s.

BrittanyS

No, you will not claim his W-2 income on your return. You are just claiming him as a dependent. He will need to file a separate return for his W-2 and indicate that he was claimed as a dependent on someone else's return. To enter this in TurboTax, you will follow these steps:

Create a TurboTax account for your son
Under my info answer the question "Another Taxpayer can claim me as a dependent on their return" as "Yes"
Answer the question for "Will this person claim you as their dependent on their 2024 return" as "Yes"
Enter his W-2 information

@deepaktigarg-gma

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