1098-E Question

[Alicia87]

DD19 is a freshman in college this year. I have received a 1098-E form in the mail in her name stating Student Loan Interest received by lender is $70.09. Do we include this when filing our taxes? She doesn't file because she doesn't work. I'm confused about this.

I also received a 1098-T (Tuition statement) in her name. Amount billed for qualified tuition is listed as $2883 and scholorship amount is $500. Again, would this be included on our taxes?

 

[jagafen]

Did she make the payments, or did you? I would think that if she's a qualifying dependant, and you made the loan/tuition payments, then that info would apply to your taxes.

 

[dzneelvr]

If you do your own taxes you should see a spot to enter the information off the T form. If you have someone do them, make sure you take all applicable tax statements to them. I can't tell you what the overall effect will be on your taxes but it must be reported. (Qualifier: As long as you are claiming DD on your taxes)

 

[ajk912]

If you are claiming her as a dependent then you should be able to take it off your taxes. I only had $700 in tuition for me and it took off $200 off my taxes. I was happy!

 

[tar heel]

If you can claim her as a dependent, the tuition deduction or credit is yours -- this is true even is she did have income. It also is true even if the tuition was paid by someone else (grandparents, for example). Scholarship amounts are taken off what you can claim, which should be clear on your form. Whether you take the deduction or credit depends on her year in school and your tax situation -- you will probably do best with the credit since she's in her first two years. This is subject to income limitations, so you may not get it. I've not done our taxes yet this year and can't remember what the limit is (over $100,000 but I can't remember how much over).

I'm not an accountant, but I've had a child in college for nine straight years!

 

[deerhart]

If she is your dependent, hen you can take the tuition deduction on your taxes, but you cannot take the student loan interest.

http://www.irs.gov/publications/p970/ch04.html#d0e5146

Even if you paid the interest, it is in her name and therefore her deduction, which she won't be able to take because she's a dependent on your taxes.. Also, the loan company only has to declare interest paid over $600.00 to the IRS.

We got to claim my DH's tuition as a midwestern disaster zone deduction this year (since we are in the disaster area), so we also got to claim all his books, supplies, and some gas costs (one class over last summer was to drive to different places for each class).

 

[edk35]

I got the same forms for our daughter. If you use Turbo Tax (which I do)..it will ask you for this infomation. It is not hard at all. It also deducted her scholarship amt. too.

 

[Alicia87]

Ahhhh, thanks so much for the input!!! I was really starting to worry about this. I do our taxes with Turbo Tax, but wasn't sure if we were to include the info. from the forms on our taxes since they were in her name.

We make over $100,000/yr., so it may not make any difference at all. I'd LOVE to be able to get some sort of break though!