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April 1, 2021
Question

Who gets education credit when both parents and child pay some expenses?

  • April 1, 2021
  • 1 reply
  • 0 views

Hi,

 

In Fall 2019, my child started college.  We paid for that semester with scholarships, loan, ESA distribution (check was sent parent, but Q-1099 listed child), and money from both parents and child.  Since child was a dependent, entered Q-1099 and 1098-T under our (parent) tax return and received education credit/refund.

 

For 2020, we again paid for Spring semester with scholarships, ESA distribution (check was sent parent, but Q-1099 listed child), and child's money.  Fall 2020 was completely paid by child with scholarship and loans.

 

Since child paid for most of 2020 with scholarships and loans and lived in off-campus apartment August through December, we wondering if child no longer a dependent.  If child files as a non-dependent, who files the Q-1099 and 1098-T with their taxes?  Who's eligible for education tax break?  Both?  Neither?

 

 

    1 reply

    April 1, 2021

    If your child is under 24 and a full time student, he/she is your dependent if he/she does not provide more than half of his/her own support in 2020.

     

    If the child is your dependent, then only you can file the 1098-T and claim education expenses.

     

    If the child is not your dependent, only he/she can file form 1098-T and claim education expenses.

     

    It does not matter who actually paid the education expenses.

     

    Form 1099-Q is filed by the person whose name and SSN appears on the form as the recipient.

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