The 1098-T form is used to report tuition payments made to educational institutions. Figuring out who is responsible for filing this form can be tricky, especially if you're a parent paying for your child's education.
In most cases, the student is responsible for filing the 1098-T form. However, there are a few exceptions to this rule. If you're a parent and you paid for your child's education, you may be able to claim the American Opportunity Tax Credit or the Lifetime Learning Credit. To do this, you'll need to file the 1098-T form with your tax return.
The following is a more detailed explanation of who is responsible for filing the 1098-T form in different situations:
Who Files a 1098-T: Parent or Child 2021
Determining who is responsible for filing the 1098-T form can be confusing, particularly for parents paying for their children's education. Here are 7 important points to clarify the matter:
- Student files 1098-T.
- Exceptions for tax credits.
- Parent may file for AOTC.
- Parent may file for LLC.
- Qualifying expenses matter.
- IRS determines eligibility.
- Check tax instructions.
For more information, consult the IRS website or consult with a tax professional.
Student files 1098-T.
In general, the student is responsible for filing the 1098-T form. This is because the 1098-T form reports tuition payments made to educational institutions, and the student is the one who is receiving the education and incurring the tuition costs.
There are a few exceptions to this rule. For example, if the student is a dependent child and the parent is claiming the American Opportunity Tax Credit (AOTC) or the Lifetime Learning Credit (LLC), then the parent may be able to file the 1098-T form instead of the student.
To determine if they are eligible to claim the AOTC or LLC, the parent must meet certain requirements, such as having paid qualified expenses for the student and meeting the income limits. The IRS provides more information about these tax credits on its website.
If the parent is eligible to claim the AOTC or LLC, they can file the 1098-T form with their tax return. However, the student must still provide the parent with the 1098-T form, as the parent will need the information from the form to complete their tax return.
It's important to note that the student is still responsible for filing the 1098-T form if they are not eligible for the AOTC or LLC. This is because the 1098-T form is used to report tuition payments, and the student is the one who incurred these costs.
Exceptions for tax credits.
There are a few exceptions to the general rule that the student is responsible for filing the 1098-T form. These exceptions are related to two tax credits: the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC).
- Parent may file if claiming AOTC.
If the parent is claiming the AOTC for the student, the parent can file the 1098-T form instead of the student.
- Parent may file if claiming LLC.
If the parent is claiming the LLC for the student, the parent can file the 1098-T form instead of the student.
- Student must still provide 1098-T to parent.
Even if the parent is filing the 1098-T form, the student must still provide the parent with the 1098-T form. This is because the parent will need the information from the form to complete their tax return.
- Student is responsible for filing if not eligible for AOTC or LLC.
If the parent is not eligible to claim the AOTC or LLC for the student, then the student is responsible for filing the 1098-T form.
It's important to note that the AOTC and LLC are two different tax credits with different eligibility requirements. The AOTC is for qualified education expenses paid for the first four years of post-secondary education, while the LLC is for qualified education expenses paid for any level of post-secondary education.
Parent may file for AOTC.
The American Opportunity Tax Credit (AOTC) is a tax credit for qualified education expenses paid for the first four years of post-secondary education. The AOTC is claimed on the parent's tax return, even if the student is the one who is paying the qualified expenses.
To be eligible to claim the AOTC, the parent must meet certain requirements, including:
- The student must be enrolled at least half-time, for at least one academic period beginning in the tax year, in a qualified educational institution.
- The student must be pursuing a degree or other recognized educational credential.
- The student must not have a felony drug conviction at the end of the tax year.
- The student must not have finished the first four years of higher education at the beginning of the tax year.
- The student must not have claimed the AOTC or the former Hope credit for more than four tax years.
If the parent meets all of the eligibility requirements, they can claim the AOTC by completing the IRS Form 8863, Education Credits. The amount of the AOTC is up to $2,500 per eligible student.
If the parent is claiming the AOTC for the student, the parent can file the 1098-T form instead of the student. However, the student must still provide the parent with the 1098-T form, as the parent will need the information from the form to complete their tax return.
It's important to note that the AOTC is a tax credit, not a deduction. This means that the AOTC directly reduces the amount of taxes that the parent owes. The AOTC can be a valuable tax break for parents who are paying for their children's education.
Parent may file for LLC.
The Lifetime Learning Credit (LLC) is a tax credit for qualified education expenses paid for any level of post-secondary education. The LLC is claimed on the parent's tax return, even if the student is the one who is paying the qualified expenses.
- Student must be enrolled in qualified educational institution.
The student must be enrolled at least half-time, for at least one academic period beginning in the tax year, in a qualified educational institution.
- Student must be pursuing a degree or other recognized educational credential.
The student must be pursuing a degree, certificate, or other recognized educational credential.
- No limit on number of years credit can be claimed.
There is no limit on the number of years that the LLC can be claimed.
- Credit amount is up to $2,000 per eligible student.
The amount of the LLC is up to $2,000 per eligible student.
If the parent meets all of the eligibility requirements, they can claim the LLC by completing the IRS Form 8863, Education Credits. The LLC is a valuable tax break for parents who are paying for their children's education.
Qualifying expenses matter.
Not all education expenses are eligible for the AOTC or LLC. Only qualified expenses can be used to claim these tax credits.
Qualified expenses for the AOTC and LLC include:
- Tuition and fees
- Books and supplies
- Laboratory fees
- Student activity fees
- Other related expenses required for enrollment or attendance at the educational institution
Expenses that are not qualified for the AOTC and LLC include:
- Room and board
- Transportation
- Personal expenses
- Student loans
- Scholarships and grants
It's important to keep track of all qualified education expenses paid during the tax year. This information will be needed when claiming the AOTC or LLC on the parent's tax return.
For more information on qualified education expenses, refer to the IRS Publication 970, Tax Benefits for Education.
IRS determines eligibility.
The IRS is responsible for determining whether or not a taxpayer is eligible to claim the AOTC or LLC. The IRS does this by reviewing the taxpayer's tax return and comparing the taxpayer's income and other information to the eligibility requirements for the AOTC and LLC.
If the IRS determines that the taxpayer is eligible to claim the AOTC or LLC, the IRS will allow the taxpayer to claim the credit on their tax return. However, if the IRS determines that the taxpayer is not eligible to claim the AOTC or LLC, the IRS will disallow the credit and the taxpayer will not be able to claim it on their tax return.
Taxpayers who are unsure whether or not they are eligible to claim the AOTC or LLC should refer to the IRS Publication 970, Tax Benefits for Education. This publication provides detailed information on the eligibility requirements for the AOTC and LLC, as well as instructions on how to claim the credits on a tax return.
Taxpayers can also contact the IRS directly to inquire about their eligibility for the AOTC or LLC. The IRS can be reached by phone at 1-800-829-1040.
Check tax instructions.
The IRS provides detailed instructions on how to claim the AOTC and LLC on a tax return. These instructions are included in the IRS Publication 970, Tax Benefits for Education.
- Read the instructions carefully.
The instructions for claiming the AOTC and LLC can be complex. It's important to read the instructions carefully to make sure that the credits are claimed correctly.
- Use the correct tax form.
The AOTC and LLC are claimed on different tax forms. The AOTC is claimed on Form 8863, Education Credits, and the LLC is claimed on Form 8863, Education Credits.
- Attach the 1098-T form to the tax return.
A copy of the 1098-T form must be attached to the tax return when claiming the AOTC or LLC.
- Keep a copy of all tax records.
Taxpayers should keep a copy of all tax records, including the 1098-T form and the tax return, for at least three years.
Taxpayers who need help understanding the instructions for claiming the AOTC or LLC can contact the IRS directly. The IRS can be reached by phone at 1-800-829-1040.
FAQ
Here are some frequently asked questions (FAQs) about who files a 1098-T form, specifically for parents:
Question 1: Can I file my child's 1098-T form if I'm claiming the AOTC or LLC?
Answer 1: Yes, you can file your child's 1098-T form if you are claiming the AOTC or LLC. However, your child must still provide you with the 1098-T form, as you will need the information from the form to complete your tax return.
Question 2: What if my child is not eligible for the AOTC or LLC?
Answer 2: If your child is not eligible for the AOTC or LLC, then your child is responsible for filing the 1098-T form.
Question 3: What if my child is a dependent and I'm claiming them on my tax return?
Answer 3: Even if your child is a dependent and you are claiming them on your tax return, your child is still responsible for filing the 1098-T form unless you are claiming the AOTC or LLC.
Question 4: Where can I get more information about the AOTC and LLC?
Answer 4: You can get more information about the AOTC and LLC from the IRS website or by contacting the IRS directly.
Question 5: What should I do if I have questions about filing the 1098-T form?
Answer 5: If you have questions about filing the 1098-T form, you can contact the IRS directly or consult with a tax professional.
Question 6: Where can I find the 1098-T form?
Answer 6: The 1098-T form is typically mailed to the student by the educational institution. If you have not received the 1098-T form, you can contact the educational institution directly.
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These are just a few of the frequently asked questions about who files a 1098-T form. For more information, please consult the IRS website or contact the IRS directly.
Transition Paragraph:
In addition to the information provided in the FAQ section, here are some additional tips for parents who are filing the 1098-T form:
Tips
Here are some practical tips for parents who are filing the 1098-T form:
Tip 1: Keep track of all qualified education expenses.
Throughout the year, keep track of all qualified education expenses that you pay for your child. This includes tuition and fees, books and supplies, and other related expenses. You will need this information when you file your tax return.
Tip 2: Get a copy of your child's 1098-T form.
The 1098-T form is typically mailed to the student by the educational institution. However, you should ask your child for a copy of the form so that you can file it with your tax return if you are claiming the AOTC or LLC.
Tip 3: File your tax return on time.
The deadline for filing your tax return is April 15th. However, if you are claiming the AOTC or LLC, you may be able to file your tax return later. Check the IRS website for more information.
Tip 4: Keep a copy of your tax records.
Once you have filed your tax return, keep a copy of all of your tax records, including the 1098-T form and your tax return. You should keep these records for at least three years.
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By following these tips, you can ensure that you are properly filing the 1098-T form and claiming the AOTC or LLC if you are eligible.
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In conclusion, determining who is responsible for filing the 1098-T form can be confusing, especially for parents paying for their children's education. However, by understanding the rules and following the tips provided in this article, you can ensure that the 1098-T form is filed correctly and that you are claiming the AOTC or LLC if you are eligible.
Conclusion
Summary of Main Points:
In general, the student is responsible for filing the 1098-T form. However, there are a few exceptions to this rule. Parents may be able to file the 1098-T form if they are claiming the AOTC or LLC for their child. In order to claim these tax credits, parents must meet certain eligibility requirements and follow the instructions provided by the IRS.
Closing Message:
Filing the 1098-T form can be a confusing process, especially for parents who are paying for their children's education. However, by understanding the rules and following the tips provided in this article, parents can ensure that the 1098-T form is filed correctly and that they are claiming the AOTC or LLC if they are eligible. Parents should keep in mind that the IRS is responsible for determining eligibility for these tax credits, and they should consult the IRS website or contact the IRS directly if they have any questions.
By working together, parents and students can ensure that the 1098-T form is filed correctly and that they are receiving the maximum benefit from the AOTC and LLC.