Can a College Student Receive a Tax Credit for School While Their Parents Still Claim Them?
The tuition and fees tax deduction offsets the cost of mandatory educational expenses paid out of pocket or via an educational loan. In some cases, dependent students who meet certain criteria can claim the tuition and fees tax deduction for themselves. You must complete a Form 1098-T tuition statement in addition to a Form 1040 or 1040A to claim the deduction.
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Tuition and Fees Tax Deduction
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Claimants of the tuition and fees tax deduction can claim up to $4,000 of educational expenses. The tuition and fees tax deduction allows taxpayers to reduce their income subject to tax by the amount claimed, which in turn reduces their overall tax liability. According to the Internal Revenue Service, this deduction phases out for taxpayers who earn an adjusted gross income exceeding $160,000 if married and filing jointly, or $80,000 for single taxpayers. Taxpayers with a married filing separately status are ineligible for the tuition and fees tax deduction.
Who Can Claim the Deduction?
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If another taxpayer can claim another exemption for you as their dependent, such as the head of household exemption, you cannot receive a tax credit for qualified education expenses. Even if you paid your own education expense, if your parents or guardian can claim any type of exemption for you as a dependent, then no one can claim the tuition and fees tax deduction on your behalf. However, if your parents or guardians claimed you as a dependent and they are ineligible to claim an exemption for you as a dependent, you can claim the tuition and fees tax deduction whether they paid all qualified education expenses or you paid them yourself.
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Qualifying Expenses
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Expenses required for attendance at an educational institution of higher education are eligible for the tax deduction. This includes tuition, student activity fees, expenses for course-related supplies, books and equipment and any other required fees for enrollment at your school. However, expenses such as insurance, medical fees, room and board, and transportation expenses do not qualify.
Considerations
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Filing your tax return as an independent taxpayer guarantees your ability to claim a tax deduction for tuition fees you paid for yourself. As long as your income does not surpass the limit on adjusted gross income and you meet the other filing requirements, you are entitled to the tuition and fees tax deduction. If a student paid his tuition but he is ineligible to claim the tuition and fees tax deduction, he may be eligible for other education based tax credits such as the Lifetime Learning tax credit or the American Opportunity credit.
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