parents and child 1098-t

Forum|Forum|5 years ago
February 12, 2021
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I am a first year graduate student and I graduated from my undergraduate this year. I am not a dependent as have not lived with my parents since April and they do not financially support me. With that said I received 2 1098-T forms, one from my undergraduate institution and one from my graduate institution. My parent's paid tuition for the former and I paid for the latter. Will they be able to file that 1098-T even though I'm not a dependent, and will it affect me?

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Hal_Al

Employee

Q. Will they be able to file that 1098-T even though I'm not a dependent?

A. No. The tuition credits follow the student's dependency, regardless of who paid the tuition. If you are not a dependent, you may claim the tuition credit and count all the money paid by both you and them.

You may claim only one tuition credit for the year. If you claim the American Opportunity credit (AOC), you may only count the undergrad expenses. You may claim the Lifetime Learning Credit (LLC)counting expenses for both grad & undergrad courses.

There is a four time limit to claiming the AOC. So, chances are your parents already did that 4 times. So, you cannot claim it a 5th time.