So we use Turbotax to file our taxes, and it’s asking for the 1098T amounts for our daughter’s tuition. She’s a dependent. I just want to be sure this is the correct place to do this, not on her own personal income tax return. I’m pretty sure it’s correct, but want to make 100% sure that she’s not supposed to record any of this on her own income tax return, despite the 1098t being in her name and SSN. Sorry for being so dense, this is all brand new to us! Thank you.
I think TurboTax and other tax software asks for this information as part of doing the parents’ return so that the program can see if the parent is eligible for any education tax credits or deductions.
Thank you. Yes, it did create a sizable credit under the American Opportunity Credit. So does that mean that the information is to be entered both on our (parents) tax return and on the student’s own tax return?
^Any taxable scholarships will go on the dependent student’s own tax return. Any qualified education expenses (after deducting tax-free scholarships and qualified 529 distributions) will go on the parents’ tax return for education credits or tuition and fees deduction. See IRS Pub 970.
In the program you enter the info for both returns. On the student’s to see if there are any taxable amounts, on the parent’s to see if there are QEE for the AOTC. The 1098T won’t be sent to the IRS with either return. If there should be any taxable amount, it would be included on the student’s return. Turbo tax should also ask for any 529/Coverdell distributions to make sure there is no double tax benefit.