Quiver0f10 Posted February 8, 2009 Share Posted February 8, 2009 My 18 yo college student recieved one of these, but I am pretty sure he wasn't able to file it himself because we claimed him as a dependent. Is this correct? If my son can't claim this, should my my husband and I claim this on our taxes, even though my son will be paying back his student laons himself? Thanks. Quote Link to comment Share on other sites More sharing options...
Barb_ Posted February 8, 2009 Share Posted February 8, 2009 My 18 yo college student recieved one of these, but I am pretty sure he wasn't able to file it himself because we claimed him as a dependent. Is this correct? If my son can't claim this, should my my husband and I claim this on our taxes, even though my son will be paying back his student laons himself? Thanks. Yes, you should take it on your taxes. The IRS doesn't care who is paying the bill, only who is claiming the dependent. You can always put the money into an account in your son's name to save until he begins paying off the loans. Barb Quote Link to comment Share on other sites More sharing options...
Quiver0f10 Posted February 8, 2009 Author Share Posted February 8, 2009 Yes, you should take it on your taxes. The IRS doesn't care who is paying the bill, only who is claiming the dependent. You can always put the money into an account in your son's name to save until he begins paying off the loans. Barb So, it's correct that as a dependent he can't take this credit? Quote Link to comment Share on other sites More sharing options...
Barb_ Posted February 8, 2009 Share Posted February 8, 2009 So, it's correct that as a dependent he can't take this credit? Correct. From the IRS website: Can You Claim the Credit The following rules will help you determine if you are eligible to claim the Hope credit on your tax return. Who Can Claim the Credit Generally, you can claim the Hope credit if all three of the following requirements are met. * You pay qualified education expenses of higher education. * You pay the education expenses for an eligible student. * The eligible student is either yourself, your spouse, or a dependent for whom you claim an exemption on your tax return. Note. Qualified education expenses paid by a dependent for whom you claim an exemption, or by a third party for that dependent, are considered paid by you. ETA: Link to page discussing this Quote Link to comment Share on other sites More sharing options...
Quiver0f10 Posted February 9, 2009 Author Share Posted February 9, 2009 Thanks!!! Quote Link to comment Share on other sites More sharing options...
LizzyBee Posted February 9, 2009 Share Posted February 9, 2009 (edited) A dependent can claim the tuition credit because tuition paid by others can be deemed to be paid by the student. However, if the student claims the credit, no-one can claim him as a dependent, and he cannot take the personal exemption for himself, either. A student who has minimal income and no tax liability won't benefit from claiming an education credit. However, in a family where the student does has enough income to use the credit, and the parents' personal exemptions are reduced due to their income level, it is sometimes more beneficial for the student to claim the credit than for the parents to claim him as a dependent. From IRS Pub 970: Who Can Claim a Dependent's Expenses If there are qualified education expenses for your dependent for a year, either you or your dependent, but not both of you, can claim a Hope credit for your dependent's expenses for that year. For you to claim a Hope credit for your dependent's expenses, you must also claim an exemption for your dependent. You do this by listing your dependent's name and other required information on Form 1040 (or Form 1040A), line 6c. IF you claim an exemption on your tax return for a dependent who is an eligible student, THEN only you can claim the Hope credit based on that dependent's expenses. The dependent cannot claim the credit. IF you do not claim an exemption on your tax return for a dependent who is an eligible student (even if entitled to the exemption), THEN only the dependent can claim the Hope credit. You cannot claim the credit based on this dependent's expenses. Expenses paid by dependent. If you claim an exemption on your tax return for an eligible student who is your dependent, treat any expenses paid (or deemed paid) by your dependent as if you had paid them. Include these expenses when figuring the amount of your Hope credit. Qualified education expenses paid directly to an eligible educational institution for your dependent under a court-approved divorce decree are treated as paid by your dependent. Expenses paid by you. If you claim an exemption for a dependent who is an eligible student, only you can include any expenses you paid when figuring the amount of the Hope credit. If neither you nor anyone else claims an exemption for the dependent, only the dependent can include any expenses you paid when figuring the Hope credit. Expenses paid by others. Someone other than you, your spouse, or your dependent (such as a relative or former spouse) may make a payment directly to an eligible educational institution to pay for an eligible student's qualified education expenses. In this case, the student is treated as receiving the payment from the other person and, in turn, paying the institution. If you claim an exemption on your tax return for the student, you are considered to have paid the expenses. Edited February 9, 2009 by LizzyBee Quote Link to comment Share on other sites More sharing options...
Quiver0f10 Posted February 9, 2009 Author Share Posted February 9, 2009 Thank you, very helpful! Quote Link to comment Share on other sites More sharing options...
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