Education deduction
I’m paying for my grandsons college education. How and what can I deduct?
Answers
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Hello,
Is your grandson your dependent? If so, you may be able to claim it. What you can claim depends on what educational credit or deduction he qualifies for. The best one is usually the American Opportunity credit, there you can claim tuition as well as books and other qualifying educational expenses.
If not, usually then, they qualify for the lifetime learning credit. This is a non-refundable credit, and you can only claim books and such if you paid it directly to the school and it was required.
If your grandson is not your dependent, then either they or their legal guardians will claim the credit for educational expenses on their tax return. This can include things that you paid for, as a third party (including relatives or friends)
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Hi,
If you are claiming your grandson on your return, you can get a tax credit for his education expenses. The educational facility will issue a 1098-T showing tuition paid during the year. With this form, you can file for American Opportunity Credit (AOC) with a maximum credit of $2500. The form to fill out would be on the software under Deductions/Credits>Common Deductions/Credits>College Tuition (1098-T). You can deduct books, as well.
If you have additional questions, please let us know.
Thank you.
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seems quite unfair. Parents unable to save, yet they can claim the deduction?
