American Opportunity Tax Credit

[sonietstepp]

I just filed my 2020 Tax Return and realized I didn't apply for the American Opportunity Tax Credit . I filed as Married Filing Separately, am I qualified to apply? Do I apply for that for my college daughter or does she apply for that herself? If I am the one to apply, do I just fill out the Form 8863 and amend my 2020 Tax Return?

Thank You

[DanaB27]

You can't get the American Opportunity Credit since you are filing Married Filing Separately. Your daughter also cannot claim the education credits if she can be claimed as your dependent.

Please see Education Credits--AOTC and LLC for more details.

[Edited 5/9/2021 | 6:10am PST]

[Hal_Al · Accepted solution]

People filing as Married Filing Separately (MFS) are not eligible for the Tuition Credits, including the American Opportunity Tax Credit (AOTC).

Normally, if the student is somebody's dependent, that person claims the tuition credit, based on her educational expenses and 1098-T. 

If she does not qualify as someone's dependent, she may claim the credit on her own return.  But there are limitations for students under age 24.  A full time unmarried student, under age 24, even if you don't qualify as a dependent, is only eligible for the refundable portion of the American Opportunity Credit if he supports himself by working. You cannot be supporting yourself on parental support, 529 plans or student loans & grants. You usually must have actually paid tuition, not had it paid by scholarships & grants.  It is usually best if the parent claims that credit. 

[Hal_Al]

@DanaB27  Although the TT article you reference appears to say you can claim the LLC, filing MFS;  Pub 970 says otherwise (page 24) https://www.irs.gov/pub/irs-pdf/p970.pdf

[DanaB27]

@Hal_Al Thank you for the feedback!