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Can a student who did not make any money during the year take advantage of the education credit and get some expense money back?

 
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Hal_Al
Level 15

Can a student who did not make any money during the year take advantage of the education credit and get some expense money back?

Yes. If you are a student, over age 23, and are not claimed (or able to be claimed) as a dependent by someone else (e.g. your parent) you may be eligible for the up to $1000 refundable American Opportunity (tuition) Credit. That credit is not dependent on having either kids or earned income. You must be at least a half time degree seeking undergraduate student. There's even a loop hole available to claim the credit, if you are on scholarship.

 

Full rules See https://www.irs.gov/Individuals/AOTC 

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3 Replies
Carl
Level 15

Can a student who did not make any money during the year take advantage of the education credit and get some expense money back?

No. In order to get a refund from the IRS, you must have paid something in. If you earned no money in 2019 and therefore paid no taxes, there's nothing for you to get back.

 

Hal_Al
Level 15

Can a student who did not make any money during the year take advantage of the education credit and get some expense money back?

Yes. If you are a student, over age 23, and are not claimed (or able to be claimed) as a dependent by someone else (e.g. your parent) you may be eligible for the up to $1000 refundable American Opportunity (tuition) Credit. That credit is not dependent on having either kids or earned income. You must be at least a half time degree seeking undergraduate student. There's even a loop hole available to claim the credit, if you are on scholarship.

 

Full rules See https://www.irs.gov/Individuals/AOTC 

Carl
Level 15

Can a student who did not make any money during the year take advantage of the education credit and get some expense money back?

If you were an undergraduate in 2019 that was under the age of 24 on Dec 31 of the tax year, then no. Since you earned no money in 2019, I have no doubt that you qualify to be claimed as a dependent on your parent's tax return. It does not matter if they actually claim you or not either.

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