Can Parent Claim 1098-T? Understanding the Eligibility and Process
Understanding the tax implications of educational expenses is crucial for parents who are paying for their children’s college education. One common question that arises is whether parents can claim the 1098-T form on their tax returns. The answer to this question depends on several factors, including the type of payment and the relationship between the student and the parent.
The 1098-T form is a tax document provided by educational institutions to students who have qualified tuition and related expenses billed to them during the tax year. This form helps students and their parents determine if they are eligible for certain tax benefits, such as the American Opportunity Tax Credit (AOTC) or the Lifetime Learning Credit (LLC). However, can parents claim 1098-T on their tax returns?
Firstly, it is important to note that the 1098-T form is intended for the student’s use, not the parent’s. The student is the primary taxpayer who is responsible for reporting the information on their tax return. However, there are certain circumstances under which a parent may be able to claim the 1098-T form.
One such circumstance is when the student is claimed as a dependent on the parent’s tax return. In this case, the parent may be eligible to claim the education credits on their own return. To do so, the parent must complete Form 8863, Education Credits, and attach it to their tax return. They must also include the student’s social security number and the amount of qualified tuition and related expenses from the 1098-T form.
It is important to keep in mind that if the student is claimed as a dependent, the parent can only claim the education credits if the student is not claimed as a dependent on another person’s tax return. Additionally, the parent must meet the income requirements for the education credits.
Another scenario where a parent may be able to claim the 1098-T form is if the student is deceased. In this case, the parent may be eligible to claim the deceased student’s education expenses on their own tax return. To do so, the parent must file an estate tax return or a fiduciary income tax return and attach the 1098-T form to it.
In conclusion, while parents cannot directly claim the 1098-T form on their tax returns, they may be eligible to claim the education credits if they meet certain criteria. It is essential for parents to understand the eligibility requirements and follow the proper procedures to ensure they receive the maximum tax benefits for their educational expenses.
