The Question:

A child had tuition qualifying for the education credit. S/he was not claimed as a dependent.  Can the parent take the education credit?

Objectives

Learn the qualifications for parents to claim the education credit.

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Education Credit for a Family Member's Tuition

NO - see the instructions for form 8863

You may be able to claim the credits if you, your spouse, or a dependent you claim on your tax return was a student enrolled at or attending an eligible educational institution. 

You cannot claim the education credits if any of the following apply. 
1. You are claimed as a dependent on another person’s tax return, such as your parent’s return (but see the note above).

2. Your filing status is married filing separately.

3. Your adjusted gross income (from Form 1040, line 34, or Form 1040A, line 20) is:

● $100,000 or more if married filing jointly or
● $50,000 or more if single, head of household, or qualifying widow(er). Note: If a student is claimed as a dependent on another person’s tax return, only the person who claims the student as a dependent may claim the credits for the student’s qualified expenses. If a student is not claimed as a dependent on another person’s tax return, only the student may claim the credits.
Generally, qualified expenses paid on behalf of the student by someone other than the student (such as a relative) are treated as
paid by the student. In addition, qualified expenses paid (or treated as paid) by a student who is claimed as a dependent on your tax return are treated as paid by you. Therefore, you are treated as having paid expenses that were paid from your dependent student’s earnings, gifts, inheritances, savings, etc.

4. You (or your spouse) were a nonresident alien for any part of 2001 and the nonresident alien did not elect to be treated as a resident alien.

Solutions  Solutions are dependent upon facts & circumstances, law and the objectives.  These elements vary from one time to another, from one circumstance to another and from person or entity to another.

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