P MCCARTHY Posted March 20, 2016 Report Share Posted March 20, 2016 Parents filed and claimed the daughter as an exemption, and the education credit from the 1098T, AOC. Now the school has informed them that the daughter must file her taxes as she earned $1600 plus the difference between the tuition and the scholarship of $7092 brings her gross income into the filing required status. Parents now need to amend their return, can they use 1098T as it benefits them and not the daughter when she files? The daughter would use the scholarship income as apart of her gross wages filing single, claimable as a dependent & claimed by parents. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted March 20, 2016 Report Share Posted March 20, 2016 Yes. Quote Link to comment Share on other sites More sharing options...
P MCCARTHY Posted March 20, 2016 Author Report Share Posted March 20, 2016 Yes, the parents can claim the AOTC, claiming the daughter as an exemption, and the daughter claims the income of the scholarship with her wages and not claiming her exemption?? that is allowable?..... Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 20, 2016 Report Share Posted March 20, 2016 Why do the parents need to amend their return? Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted March 20, 2016 Report Share Posted March 20, 2016 1 hour ago, P MCCARTHY said: Yes, the parents can claim the AOTC, claiming the daughter as an exemption, and the daughter claims the income of the scholarship with her wages and not claiming her exemption?? that is allowable?..... It happens all the time. The tax benefits go to the parents in the higher tax bracket, and the income goes to the kid in the lower tax bracket. Situation normal. How does the school know that the kid meets the filing threshold? Why are the parents amending if they took the ed benefits correctly in the first place? Tom Newark, CA 1 Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted March 21, 2016 Report Share Posted March 21, 2016 Gotta go with Tom on this one. Exactlty, why amend? The only other question which I think is null, is did the daughter make enough to pay for more than one half of her support? If she did than that would cancel the exemption for the parents and then they would have to amend. But.... as I said by the figures you posted, this should be a moot point. Just food for thought. Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted March 22, 2016 Report Share Posted March 22, 2016 OP went quiet? I would like to know the whole story. Tom Newark, CA 2 Quote Link to comment Share on other sites More sharing options...
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