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Can I claim books AOTC on my return while my student is claiming excess scholarship income on his return?

kid has income of $6000+; scholarship above tuition/fees of $2000.

book fees not covered by scholarship $700 for two semesters.  Scholarship went expressly to a week abroad. 

Can parents claim that $700 with AOTC (have receipts) while student is claiming the $2000 as unearned income?  how does this all work? Every cent helps us!

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1 Reply
ChrisJ
New Member

Can I claim books AOTC on my return while my student is claiming excess scholarship income on his return?

If you claim an exemption on your tax return for an eligible student who is your dependent, treat any expenses paid (or deemed paid) by your dependent as if you had paid them. 

If you don't claim your dependent's exemption for a dependent who is an eligible student (even if you're entitled to claim the exemption): only the dependent can claim the credit on their own return. 

Read more: https://www.irs.gov/uac/tax-benefits-for-education-information-center

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