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posted Jun 4, 2019 4:06:13 PM

Can my daughter choose to show $2,000 in scholarships (total tuition was $4,000) as income on her tax return so that I can maximize the American Opportunities Credit?

My daughter only earned a few hundred dollars by working this year, so showing the $2,000 as income on her tax return would not increase her tax bill.  Is this a legitimate strategy to maximize my AOC?

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1 Best answer
Intuit Alumni
Jun 4, 2019 4:06:14 PM

Yes, as long as the scholarship has no restrictions on what the student can use the scholarship funds for. 

Click the link below and read page 15. 

CLICK HERE for IRS Pub 970 Education Credits

1 Replies
Intuit Alumni
Jun 4, 2019 4:06:14 PM

Yes, as long as the scholarship has no restrictions on what the student can use the scholarship funds for. 

Click the link below and read page 15. 

CLICK HERE for IRS Pub 970 Education Credits