College Credit Question

[NLN101]

My daughter took a gap year before starting college. She earned over the 4K allowed, and was in college for 1 semester in 2017 (4 months). Turns out I can't claim her as a dependent because she made over 4K and wasn't in school for the 5 month minimum. 

I do not qualify for the college credit, (for tuition, books). Can I put the tuition, books on her tax return, (it is for her college education)? She would qualify for the credit. 

[LindaA]

Yes, your daughter can include the amounts you paid for her tuition and books when claiming an education credit. Just keep in mind that if she chooses the American Opportunity Credit (AOC) she won't be able to claim any part of it as a refundable credit, so she may opt to claim the Lifetime Learning Credit instead. That way you can use the AOC, including the refundable portion, when she is back on your tax return. The AOC is good for four years if she meets the requirements.

[NLN101]

Thanks so much! I'll be getting back to this tonight. Will TurboTax provide a way to choose AOC or the Lifetime Learning Credit in the workflow? I'm not remembering seeing a place to select an option.

And one more question - my daughter can only claim this while she is not a dependent? Is that right? Or can she continue to claim it in future years even if she is a dependent on my tax return (understanding that tax laws change each year so no guarantee)?

Thanks again - this is really a huge help!!