I pay for my students' college tuition but 1098Ts are in their names. Can I still get the deduction? If not, how does my student get the deduction when they don't file?
I pay for my students' college tuition but 1098Ts are in their names. Can I still get the deduction? If not, how does my student get the deduction when they don't file?
If the student is your dependent, you enter the 1098-T into your TurboTax program if you are eligible for an Education Credit (more expenses paid than tax-free assistance, such as scholarships) in order for the TurboTax program to make the proper calculation.
look under Deductions & Credits.
If you have any Education Savings Account distributions, (1099-Q), enter that form first.
If there are more tax-free assistance, such as scholarships, there may be taxable income. In that case, the student would be liable to claim that excess as income.
If there is excess distributions (1099-Q) the person that was issued the 1099-Q is liable for claiming that income.
Q. If not, how does my student get the deduction when they don't file?
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. It is usually best if the parent claims that credit.
You cannot claim a credit if you are, or can be, claimed as a dependent by someone else.