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  • Brian Johnston

My kids not in college, what is this 1098-T?


Your kid isn't in college, but she just received a 1098-T for the that dual-eligible class she took last year? What do you with form 1098-T?


Eligible colleges or other post-secondary institutions must send Form 1098-T to any student who paid "qualified educational expenses" in the preceding tax year. Qualified expenses include tuition, any fees that are required for enrollment, and course materials required for a student to be enrolled at or attend an eligible educational institution. Schools must send the form to the student by January 31 and file a copy with the IRS by February 28.


There are two main credits available for college expenses. In this case, let's focus on the Lifetime Learning Credit rather than the American Opportunity Tax Credit. Because the Lifetime Learning Credit doesn't require the student to be seeking a degree, your child qualifies for the credit and YOU get to claim it because they are still a dependent on your tax return.


The amount of the credit is 20 percent of the first $10,000 of qualified education expenses or a maximum of $2,000 per return. The LLC is not refundable. So, you can use the credit to pay any tax you owe but you won’t receive any of the credit back as a refund.

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