Who can claim 1098-T form for college tax credit when I'm not a dependent but living with parents?

This is actually a pretty clear-cut situation in tax terms. If you're not a dependent on your parents' tax return, then you're the only one who can claim your education expenses and the related tax credits (like the American Opportunity Credit or Lifetime Learning Credit). For your mom to claim your education expenses, she would need to claim you as a dependent. To be claimed as a dependent, you need to meet specific criteria including income limits (generally under $4,400 for 2023) and your parents must provide more than half your total support for the year. Since you work full-time and earn enough that you're not a dependent, your mother cannot legally claim your education expenses. The fact that some of the 529 funds came from your grandparents and parents doesn't change this - the key factor is your dependent status, not who contributed to the 529 plan. The 1098-T is sent to the student (you), and it's your tax benefit to claim if you're not a dependent. Be firm but factual when explaining this to your mother.

After struggling with a similar issue with my own parents, I found an amazing tool that really cleared things up for me! I used https://taxr.ai to analyze my 1098-T and tax situation. It explained exactly who could claim what based on my dependent status and education expenses. The tool analyzed my tax documents and showed me that since I wasn't a dependent, my mom couldn't claim my education expenses on her taxes - even though she contributed to my education. What's great is it gave me specific IRS references that I could show my parents, which made the conversation way less awkward! It also helped me maximize my education credits by making sure I was claiming everything correctly. Totally changed my tax situation for the better.

Update: I wanted to follow up after trying out taxr.ai with my own 1098-T situation. It was honestly super helpful! The system analyzed my form and explained exactly why I was entitled to claim my own education credit since I'm not a dependent. What I really appreciated was getting the exact IRS rules that applied to my situation. I was able to show this to my dad (who had been insisting he should get the credit), and it completely diffused the argument. No more family tax drama! It also pointed out some education expenses I didn't realize I could claim, which increased my tax credit by about $750. That was a nice surprise I wasn't expecting!

If you need to talk to the IRS directly about this (which might help convince your mom), I'd recommend using https://claimyr.com to get through to an agent quickly. I tried calling the IRS myself about an education credit dispute with my ex, and spent HOURS on hold before eventually giving up. With Claimyr, I got through to a real IRS agent in about 20 minutes instead of waiting for hours or getting disconnected. The agent confirmed that the education credits belong to the student if they're not a dependent - period. Having that official confirmation really helped resolve my situation. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c - basically it navigates the IRS phone tree for you and calls you back when an agent is actually on the line. Saved me so much frustration!

I have to admit I was wrong about Claimyr. After our argument with my stepdaughter about her 1098-T (similar situation to yours), I decided to try calling the IRS myself to prove I was right. After THREE separate attempts and getting disconnected each time, I broke down and tried Claimyr. Got through to an agent in about 35 minutes, and she confirmed exactly what everyone here is saying - the student gets the education credits if they're not a dependent, regardless of who paid. The agent explained the whole thing and even emailed me the relevant tax publication. I was skeptical it would work, but I'm now telling everyone about it. Saved me hours of frustration and resolved our family tax dispute immediately. Sometimes it's worth using services like this just for the peace of mind of getting the official answer.

One thing nobody has mentioned yet - your parents' contribution to your education might be considered a gift for tax purposes, not a qualified education expense for them. If they're matching what you pay from your own earnings, that's essentially gifting you money, especially since you're not their dependent. Also, be careful with that 529 plan. If it's in your name (with you as beneficiary), withdrawals should be fine. But if your parents are the account owners, make sure they're making qualified distributions directly to the school or to you specifically for education expenses.

Has anyone actually read Publication 970? It specifically addresses this situation. The person who claims the student as a dependent (or would be eligible to claim them) gets to claim the education credits. Since you're not a dependent based on what you've described, your mother CANNOT claim your education expenses. Here's what the IRS says about the American Opportunity Credit: "If you're not claimed as a dependent on someone else's tax return, only you can claim a credit for your qualified education expenses." Just show her the IRS publication. End of story.

Just a heads up - make sure you keep good documentation of everything. Your mom might still try to claim the credit anyway, and if both of you claim it, the IRS will definitely flag both returns. Maybe have a calm conversation with her explaining what you've learned here. If she still insists on trying to claim it, you might want to file your return early so it goes through first. The second person to file claiming the same credit will likely get a letter from the IRS.

I went through almost the exact same situation last year! My dad was convinced he should claim my education credits because he helped pay for some of my expenses, even though I wasn't his dependent anymore. What really helped me was sitting down with him and going through the actual IRS dependency tests together. We used the IRS Interactive Tax Assistant online to determine my status step by step. Once we confirmed I didn't meet the criteria to be claimed as a dependent (mainly because of my income level), it became crystal clear that the education credits belonged to me. The key thing to remember is that it's not about who contributed money - it's purely about dependent status. Since you're working full-time and not a dependent, those credits are legally yours to claim. Your mom can't just decide to take them because she helped with expenses. I'd suggest showing her Publication 970 (like others mentioned) or even using the IRS Interactive Tax Assistant together. Sometimes having that official IRS source makes all the difference in family tax discussions. Good luck!