Can i not claim my son as a dependent to get AOTC?

[JayKP]

Hi,

after run the "trial" run, i found if I not claim my son on my tax return and if he file his own tax, we will get $500 more due to $1000 AOTC he may get. So can I do this legally?

Here is summery:

1. If I claim him, I still cannot get education tax credit due to my income is more than limit, >$180k. So I only get $500 as child tax credit.

2. If I do not claim him, I will loose $500 child tax credit only.

3. Now if he file himself with check the option "someone can claim him as dependent", but "did not claimed", he is getting $1000 for AOTC, even he do not have any income.

4. He got 1098-T on his name and we both get 1099-Q on our names, but the total eligible education is more than total of 1099-Q

So, can are we legally allowed to do this?

[MarilynG1]

Yes, if you don't qualify for an Education Credit, your son may qualify for the AOCT based on his 1098-T entry, and any other Qualified Education Expenses he enters.

Yes, it is legal to do this.

As long as the 1099-Q distributions were used entirely for education expenses, you don't need to enter them in your returns, just keep them with your records of payments.

Here's more info on Form 1098-T. 

[JayKP]

So, on his return, we have only have enter the information of his 1098-T, right? As he has no other income, so no W-2 information. And his 1098-Q is fully cover with education expenses. So basically his 1040 has nothing but $1000 AOTC at the end with supporting form 8863, right?

[JayKP]

Also how this will work....which i found  at for line 7 of form 8863

https://www.irs.gov/instructions/i8863#en_US_2023_publink53002gd0e674

Base on following Q/A, He may not look qualify. This is confusing. :(

You can answer the following questions to determine whether you qualify for a refundable American opportunity credit.

1. Were you under age 24 at the end of 2023?

   If no, stop here; you do qualify to claim part of the allowable American opportunity credit as a refundable credit.

   If yes, go to question 2.

2. Were you over age 18 at the end of 2023?

   If yes, go to question 3.

   If no, go to question 4.

3. Were you a full-time student (defined later) for 2023?

   If no, stop here; you do qualify to claim part of your allowable American opportunity credit as a refundable credit.

   If yes, go to question 5.

4. Were you age 18 at the end of 2023?

   If yes, go to question 5.

   If no, go to question 6.

5. Was your earned income (defined later) less

   than one-half of your support (defined later) for 2023?

   If no, stop here; you do qualify to claim part of your allowable American opportunity credit as a refundable credit.

   If yes, go to question 6.

6. Were either of your parents alive at the end of 2023?

   If no, stop here; you do qualify to claim part of your allowable American opportunity credit as a refundable credit.

   If yes, go to question 7.

7. Are you filing a joint return for 2023?

   If no, you don't qualify to claim part of your allowable American opportunity credit as a refundable credit.

   If yes, you do qualify to claim part of your allowable American opportunity credit as a refundable credit.

[DavidD66]

The IRS has an online too that you can use to determine whether or not your son can claim either the American Opportunity Credit or the Lifetime Learning Credit.  To access the interview, click on:  Am I eligible to claim an education credit?