I attend UCSD and just received my 1098-T form but Idk what to do with it?
My parents earn less than $130,000 a year so I think I qualify for education tax credits( american opportunity tax credit) but what am I supposed to do with the form?
Also what really is american opportunity tax credit? should I fill out a form for it?
Thank you in advance
Are you your parents’ tax dependent?
If so, your parents should have the 1098T for their tax return.
It will also indicate if the student has taxable scholarships. If your parents want to take the AOTC, they’ll need the 1098 to prepare their tax return, and if you have scholarships or grants you’ll need it for yours. If you use a tax program like TurboTax, have it ready and the prompts will ask you for information from the 1098T
Yes I am my parents’ tax dependent. So I don’t necessarily have to do anything with the form? I just have to let my parents have it?
Your parents will use it for their taxes. Did you get a lot of grants/scholarships? If so, read this to see if you need to pay taxes on any of your scholarship/grant money: https://www.irs.gov/uac/Do-I-Include-My-Scholarship,-Fellowship,-or-Education-Grant-as-Income-on-My-Tax-Return%3F. Basically, if the amount of scholarships/grants exceed tuition, fees, and certain other allowable costs, you need to pay taxes on the excess amount. If you did receive more in scholarships/grants, don’t forget to check your state … even if you do not have to pay federal taxes, you may have to pay state income tax. In my state, the minimum earnings required to file is lower than the federal requirement.
What amounts are in what box n ets and are you at least half-time undergrad?