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why cant I choose who will take the tuition transfer on my return. I am the person with the higher income and want to take the tax credit.

Forum|Forum|1 year ago
January 2, 2025
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Best answer by Hal_Al

The tuition credit follows the student's dependency. Only the parent claiming the student as a dependent can claim the tuition credit, regardless of who actually paid the tuition* or has the higher income. If no one is claiming the student as a dependent, then the student can claim the tuition credit on his own return. **

*Although the general rule, in taxes, is that you must be the one making the payment, to get the deduction or credit, there is an exception for education.

**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)

B

Bsch4477

Employee

If the student is claimed as your dependent then you claim education credit. If you didn’t claim the student then the student claims it.

X

xmasbaby0

Employee

Please explain more clearly. Is there an issue between you and another parent who wants to claim the student as a dependent and get the education credit? Provide some details.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Hal_AlAnswer

Employee

The tuition credit follows the student's dependency. Only the parent claiming the student as a dependent can claim the tuition credit, regardless of who actually paid the tuition* or has the higher income. If no one is claiming the student as a dependent, then the student can claim the tuition credit on his own return. **

*Although the general rule, in taxes, is that you must be the one making the payment, to get the deduction or credit, there is an exception for education.

**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)