A Form 1098-T does not by itself decide who claims a college student or receives an education credit. Dependency comes first. Then compare qualified expenses, scholarships, payment timing and the rules for the particular credit. The parent and student should coordinate before either return is filed.
Determine whether someone can claim the student
Review the student's age, full-time enrollment, living arrangements, support and other dependency requirements for the tax year. A temporary absence for education can count differently from a permanent move. Turning 18, earning wages or living in a dorm does not automatically end dependency.
On the student's return, “someone can claim you” is a legal eligibility question, not simply whether a parent has already clicked submit. Coordinate both returns using the correct facts. If a return has already been filed incorrectly, consider the appropriate correction rather than inventing a second set of household facts.
Reconcile school records with actual payments
| Record | Why it matters |
|---|---|
| Form 1098-T | Starting information about reported payments and scholarships, not a complete credit calculation. |
| Detailed student account ledger | Shows charges, payments, refunds and the academic periods involved. |
| Scholarship and grant terms | Establish restrictions and potential treatment of amounts not used for qualified costs. |
| Books and required supplies | Eligibility depends on the specific benefit; keep receipts. |
| 529 plan distributions and expenses | Prevents using the same expenses for incompatible tax benefits. |
The American Opportunity Tax Credit and Lifetime Learning Credit have different rules. Enrollment, years claimed, income and expense definitions all matter. Room and board are not generally qualified expenses for these education credits, even though other education-related provisions may treat costs differently.
Coordinate benefits before calculating the credit
- Resolve dependency and identify whose return may claim the education benefit.
- Match payments to the correct calendar year and eligible academic period.
- Reduce or allocate expenses for tax-free assistance and other benefits as required.
- Check whether the same student or expense has already supported another credit or tax-free distribution.
- Review Form 8863 requirements and the student's separate filing obligations.
Questions about students and Form 1098-T
Does paying my own phone bill make me independent?
No. Dependency uses several tests and a full support analysis. One personal expense does not settle the result.
Can both the parent and student claim a credit for the same tuition?
The same education expenses cannot support duplicate credits. Determine who is eligible to claim the benefit and coordinate both returns.
Is the scholarship always tax-free?
No. Its terms, the student's status and how it is used matter. Amounts for nonqualified expenses can require separate income treatment.
Can I just enter the numbers from the 1098-T?
Use it as a starting document, then reconcile actual payments, assistance and other benefits. The form does not contain every fact needed for a correct credit.
Official sources
Sources checked October 19, 2026. General information; application depends on the tax year and your circumstances.
Your next step
Call to discuss your situation and confirm the documents needed. (323) 364-5589