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College daughter got a free fed & state return with American Opp Credit. 2nd daughter has same situation - TTax showing $60Fed/$50State and no AO Credit. Why?

 
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2 Replies
Hal_Al
Level 15

College daughter got a free fed & state return with American Opp Credit. 2nd daughter has same situation - TTax showing $60Fed/$50State and no AO Credit. Why?

Something about her return required an upgrade.

But, TurboTax also has another free product called the Free File Edition (not to be confused with the regular Free Edition).  It has free Federal preparation and free State preparation. There is no efiling fee. It is not available after October 15

The Free file Edition can handle a 1099-MISC.

The Free file Edition is more fully-featured than the regular Free Edition.  The Free File Edition can prepare Schedule A, C, D, E, and F that the Free Edition cannot. 

For Free File Edition a user needs to meet only ONE of these qualifications:

  •      AGI of $36,000 or less
  •      or active duty military (including Reservists and National Guard) with a military-issued W-2 and a 2019 AGI of $69,000 or less
  •      or eligible for the Earned Income Credit (EIC aka EITC).


The FREE FILE Edition is located at:
https://turbotax.intuit.com/taxfreedom

How to switch and start over in Free file Edition
https://ttlc.intuit.com/questions/2026912-how-do-i-switch-to-turbotax-freedom-edition

Hal_Al
Level 15

College daughter got a free fed & state return with American Opp Credit. 2nd daughter has same situation - TTax showing $60Fed/$50State and no AO Credit. Why?

College students don't usually qualify for the refundable portion of the AOC.  So there's something different about the two students. It could be age alone.

There's a new urban myth among college students that says they can get a $1000 from the government just for filing a tax form. For most of them, they simply aren't eligible. A full time unmarried student, under age 24, 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. 

You cannot claim a credit if you are, or can be, claimed as a dependent by someone else.

 

 

If She's eligible, you have answered  something wrong, in the interview. But, a lot of people are just not eligible. See https://www.irs.gov/Individuals/AOTC

https://turbotax.intuit.com/tax-tips/college-and-education/what-is-the-american-opportunity-tax-cred...

https://ttlc.intuit.com/community/credits-and-deductions/help/who-is-eligible-to-take-the-american-o...

You can use this IRS tool https://www.irs.gov/help/ita/am-i-eligible-to-claim-an-education-credit

 

 

 

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