Can I claim college tuition tax credit if my parent paid for my education?

I've gone back to college in my 30s to finish my Bachelor's degree and I'm super grateful that my parent has been covering my tuition costs directly. They pay the university from their own bank account/credit card. The thing is, my parent talked to their accountant who told them they can't claim my tuition expenses on their tax return anymore. I think it had something to do with claims they made years ago or maybe my age? I honestly don't remember the exact details. Since they can't use it, I'm wondering if I can take the 1098-T form and claim the education credits on my own tax return even though I didn't technically pay for the classes? The university sends the 1098-T with my info on it, but the money came from my parent's account. Any advice would be really appreciated! Tax season is coming up and I want to make sure I'm doing this right.

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19 comments

Javier Morales

•8M

You absolutely can claim education tax benefits even if someone else paid your tuition! The IRS actually looks at this based on who claims you as a dependent, not who paid. If your parent is NOT claiming you as a dependent on their tax return (which seems likely since you're in your 30s), then you can claim education credits like the Lifetime Learning Credit or the American Opportunity Credit on your own return. The fact that your parent paid is considered a gift to you, and then you're treated as having paid the expenses yourself. Make sure you have that 1098-T form when you file. The form should have been issued in your name and SSN even though your parent paid, which is exactly what you need. Each credit has different requirements though, so check which one works better for your situation.

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Javier Morales

•8M

The American Opportunity Credit is generally better if you qualify - it's worth up to $2,500 per eligible student and is partially refundable (meaning you can get up to $1,000 back even if you don't owe taxes). But it's only available for the first 4 years of post-secondary education, and you need to be enrolled at least half-time in a degree program. The Lifetime Learning Credit is worth up to $2,000 per tax return (not per student) and isn't refundable. However, it can be used for any years of post-secondary education, including graduate courses or even just taking a class to improve job skills. There's no minimum enrollment requirement. Given you're in your 30s returning for your Bachelor's, if this is beyond your first 4 years of college, the Lifetime Learning Credit is probably your option.

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Emma Anderson

•8M

I went through this exact same situation last year! My mom paid for my graduate program but couldn't claim it on her taxes. I found this amazing tool called taxr.ai (https://taxr.ai) that helped me figure out exactly how to handle my 1098-T situation. I uploaded my form and answered a few questions, and it explained that I could claim the Lifetime Learning Credit since I wasn't a dependent. It walks you through the whole education credit section step-by-step. Seriously saved me so much stress because this education credit stuff is confusing!

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Emma Anderson

•8M

It works alongside whatever tax software you're already using. You don't file through taxr.ai - it just gives you the correct guidance that you can then apply in TurboTax or whatever you use. It's more like a specialized advisor for confusing tax situations. The tool specifically asks about who paid the tuition, dependency status, and your income to determine eligibility. You're right about income limits - for 2023, the Lifetime Learning Credit begins phasing out at $80,000 for singles ($160,000 for married filing jointly) and completely phases out at $90,000 ($180,000 for joint filers). The system checks all that and tells you exactly what you qualify for based on your situation.

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Isabella Ferreira

•8M

I tried taxr.ai after my skeptical questions above, and I have to admit it was actually super helpful! I graduated last year and my grandparent paid my final semester's tuition. The site confirmed I could claim the Lifetime Learning Credit and showed exactly which forms and lines to use. It even explained that my grandparent's payment counts as a gift to me, making it like I paid the tuition myself for tax purposes. They had this whole section explaining the "paid by third party" rules that my regular tax software completely missed. My refund is now $1,700 higher than before I figured this out!

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CosmicVoyager

•8M

If the tuition is high and you're having trouble getting a clear answer about your education credits, you might want to call the IRS directly. I know that sounds like torture, but I had a similar issue last year and finally used this service called Claimyr (https://claimyr.com) that got me through to an actual IRS agent in about 15 minutes instead of waiting on hold for hours. I showed the agent my 1098-T and explained that my parent paid but I wasn't a dependent, and they confirmed exactly how to claim it. They even helped me figure out which education credit was better for my specific situation. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. Way less stressful than guessing or trying to interpret the tax code myself.

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CosmicVoyager

•8M

Yes, that's exactly how it works - they have a system that waits on hold for you, then calls you when an IRS agent is on the line. Instead of being stuck listening to that awful hold music for hours, you just go about your day until they connect you. I had the same reaction when I first heard about it! I was so frustrated after trying to call the IRS myself multiple times and either waiting forever or getting disconnected. I was ready to just guess on my tax return, which probably would have cost me money. With Claimyr, I got connected in about 15 minutes that particular day, though I think times vary depending on how busy the IRS is. Still way better than doing the waiting yourself.

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Freya Nielsen

•8M

I need to publicly eat my words about Claimyr. After posting that skeptical comment, I decided to try it myself since I've been putting off calling the IRS about a missing refund. It actually worked! I got a call back in about 45 minutes (not 15 in my case, but still WAY better than the 3+ hours I wasted before). The IRS agent was able to tell me exactly what was holding up my refund and what I needed to do to fix it. While I had them on the phone, I also asked about this education credit situation since I have a similar issue with my daughter's college. The agent confirmed that whoever claims the student as a dependent gets to claim the education credits, regardless of who paid.

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Omar Mahmoud

•8M

I don't know all the states, but I know California doesn't have a specific education credit like New York does. Some states that definitely have education tax benefits include Indiana, Massachusetts, Michigan, and Wisconsin. The best way to find out is to check your state's department of revenue website or look at your state tax forms for education-related credits or deductions. Sometimes they're called different things like "Education Expense Credit" or "Tuition and Fees Deduction.

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Diego Vargas

•8M

You'll definitely want to check your previous returns if you have them. The AOC can only be claimed for 4 tax years total, and they don't have to be consecutive. If you went to college right after high school and claimed it then, you might have used it up already. If you don't have your old returns, you can get tax transcripts from the IRS website that will show if you claimed the credit before. Just go to IRS.gov and search for "Get Transcript." This is something you want to be 100% sure about because claiming it a 5th time would definitely trigger problems.

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