I have a question regarding education credit. If my children received student loans and scholarships, can I claim tax credit for education costs?
You can’t claim education credit for any education expense you or your dependent didn’t pay for. Student loans are considered paid by the person who’s legally liable for the loan — usually the student.
However, you can claim the education credit for expenses paid by your dependent students for these:
- American Opportunity Credit
- Lifetime Learning Credit
Since tax-free scholarships don’t have to be repaid, amounts paid for by scholarships aren’t considered paid by you or the student; therefore tax credit for education cannot be claimed.
Learn more about earned income credit eligibility and get tax answers at H&R Block.
Learn whether you can claim the American Opportunity Credit if you received a 1098-T form from your dependents college with advice from H&R Block.
Did you know that higher education can help you earn benefits and credits on your tax return? Learn more and get tax answers at H&R Block.
Learn more about the requirements for claiming full time college students on your taxes with advice from the tax experts at H&R Block.