Who Claims the Education Credit: Parent/Dependent/or Relative?

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The rules regarding who claims education credits usually favor the eligible student, unless the parent claims them as an exemption on their tax return.

You may have the following questions:

Can I claim the education credit of my dependent?

To claim the an education credit the student must be claimed as an exemption on your tax return.

For example, if your dependent paid their own qualified education expenses during the tax year, but you claimed them as a dependent on your tax return, you would still be eligible to claim the education credit.

What if a relative pays for tuition. Can they claim the credit?

Only if they also claim the student as a dependent on their tax return. Any money paid on behalf of the student is considered a gift to the student.

As a result, whoever takes an exemption by claiming the student as a dependent gets to claim the education credit.

Can I claim an education credit for a non-dependent?

No, you cannot claim an education credit for a non-dependent. In order for you to claim an education credit, the student must be a dependent claimed as an exemption on your tax return.

Can I claim an education credit if my former spouse pays tuition, but the student is my dependent?

You are allowed to take an education credit for education expenses paid by someone else as long as your dependents are claimed as exemptions on your tax return.

If they are not, then your dependents must claim the education credits.

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