Confused about Education Credit?

Question

Our daughter moved out right before Christmas, so we can still claim her on our taxes. She is also filing her own taxes from a job she had over the summer. We paid $3000.00 cash for her tuition last semester. On the instructions for the Edu credit, it states that if the student is claimed on another persons tax return only the perosn claiming the student as a dependent can claim the credit. We are claiming her but she is also claiming herself, how does this work? I hope someone can clear this up for me.

On the 1040EZ line 5 it asks you if someone else can claim you, then there is a worksheet to do to get your taxable income. Since that was filled out properly We shouldn't have a problem with the IRS and we, as parents, should be able to claim the Edu credit. And because she is filing a 1040EZ she doesn't claim any dependents. She turned 19 Dec 28 and is a college student. Just wanted to clear that up for those of you who were confused on her age.

Answer 1

If you are claiming her as a dependant, she can not claim herself
for an exemption on her return, She would not take the 3,300.00 exemption. If she lived with you, and you provided more than 50% of her support and she is 24 or younger, you can claim her.

Answer 2

If you and she both claim her as a dependent, the exemption will be disallowed on one of the returns, since only one return can claim any given person. If you are still allowed to claim her, then she can file a return but should not claim an exemption for herself.

How it works is that you'll both get a letter from the IRS at some point, telling you that two returns claimed your daughter and asking each of you to either prove that you are allowed to claim her, or to amend your return dropping her as an exemption.

You are correct that the person claiming the exemption is also the one who can take the education credit - that would get disallowed along with the exemption from the return that isn't eligible to claim her.

If she is under 19, or is under 24 as of the end of 2006 and was a full-time student for some part of at least five months of the year, and didn't provide over half of her own support, then you can claim her as a qualifying child since she lived with you over half the year.

Answer 3

As long as your daughter was a full-time student for at least one semester in 2006, under 24 as of 12/31/2006, and did not provide over half of her own support, you can claim her as a dependent and get the education credit or tuition and fees deduction for the educational expenses you paid.

She cannot claim herself. She files single with zero exemptions.

Answer 4

The little turkey should NOT to claim herself if she meets all the tests to be YOUR dependent. If she does "claim" herself, no one will get the Educ. tax credit (legally) b/c you guys are the ones who actually paid it. She can file a tax return & NOT "claim" herself. If this is a contentious situation, I suggest you go to a CPA (not H&R Blockheads) for some advice on what to do. I am still a relative youngster, so I have never had to deal w/ this issue of someone trying to claim their own exemption & their parents also claiming it.

Answer 5

If you can claim your daughter as a dependent, even if you choose not to, she can't claim herself. If you claim the dependent, you get the educational credit. If you don't claim the dependent, your daughter can take the credit, but can not take the $3300 exemption.

Answer 6

If you're claiming her as a dependent, she can't claim herself.

Answer 7

I am kinda confused about some of the comments because my son is 19 and i payed 100% of his living and the IRS told me i could not claim him. I had to pay!!!