Question

Jennie’s grandfather paid her tuition this fall to State University (an eligible educational institution). Jennie is claimed as a dependent by her parents, but she also files her own tax return.

a) Can Jennie claim an education credit for the tuition paid by her grandfather?

b) What difference would it make, if any, if Jennie did not qualify as a dependent of her parents (or anyone else)?

For 2019 tax year

Answer 1

a) As it is mentioned that Jennie is claimed as a dependent by her parents, that means more than half of her financial support is not paid by her. In this case, one cannot claim a educational credit even if one person is filing her own tax return which is in the case of Jennie. It is because according to IRS, they are paid by your parents or any other person but not you.

b) if Jennie was qualified as not a dependent of her parents then, she could have claimed the educational credit as she is filing her own tax returns because she would have been declared not depending on her parents or any third party.

This is the difference it would have made.