1098 T form

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I am not sure if my full time student daughter who lives on her own but I still help with her expenses should claim the 1098 T form or me

KeriC

Whether you or your daughter should claim the Form 1098-T depends on who is eligible to claim her as a dependent and who paid for the education expenses. Here’s how to determine the correct filer:

Step 1: Determine if You Can Claim Her as a Dependent

A full-time student under age 24 can typically be claimed as a qualifying child dependent if all of the following apply:

1. She is under 24 years old at the end of the tax year.
2. She is a full-time student for at least five months of the year.
3. You provided more than half of her total financial support (rent, food, tuition, books, insurance, etc.).
4. She doesn’t file a joint return (unless only for a tax refund).
5. She lived with you for more than half the year, or temporary absences (like living at school) still count as living with you.

If you meet these conditions → YOU can claim her as a dependent.

Step 2: Who Should Claim Education Tax Benefits?

• If You Claim Her as a Dependent:
  • You claim education tax credits (American Opportunity Credit or Lifetime Learning Credit) based on eligible tuition and expenses paid (even if she received Form 1098-T).
  • She does not claim the credit on her own return.
• If She Files Independently (Not Your Dependent):
  • She claims the education credit on her own tax return.
  • You cannot claim any education benefits for her.

Step 3: Who Paid the Tuition Matters

• If you paid tuition (directly or through loans in your name), and she’s your dependent, you should claim the credit.
• If she paid her tuition (from her income, loans in her name, or savings), she can claim the credit only if you don’t claim her as a dependent.

In short:

• If you claim her as a dependent → YOU claim education credits on your return.
• If she is NOT your dependent → SHE claims the credits on her return.