American Opportunity Education credit

[amsabeti]

Hi team,I know I am eligible for the American Opportunity Education Credit but for some reason Turbotax is not allowing me to claim it. Can someone help with this?

[TaxGuyBill]

Is somebody else claiming you as a dependent?
How old are you?
What is on Line 47 of your Form 1040?

[cawall65]

1580

[cawall65]

no one is claiming me as dependent

[cawall65]

19 years old

[cawall65]

No one claim me as a dependent. I'm 19 years old and the line 47 is $1580.00

[costberg13]

I'm having the same problem.  Form 8863 and Publication 970 both state that even though you may be claimed as a dependent on your parent's return, if they do not claim an exemption for you, you may take the AOC deduction.  All other qualifications have been met.

[TaxGuyBill]

@costberg13   The AOC is made up of two parts.  If you are under age 24, most likely you do not qualify for the Refundable part (up to $1000).  See link below for details.
<a rel="nofollow" target="_blank" href="https://www.irs.gov/publications/p970/ch02.html#en_US_2016_publink1000211799">https://www.irs.gov/pu...>

As for the Nonrefundable part (up to $1500), it can only offset Income Tax.  Does your tax return show Income taxes (Line 47 on Form 1040, Line 38 of Form 1040A, or Line 9 of your 1040EZ)?

[ChrisJ · Accepted solution]

Here are some possible reasons you aren't eligible:

• Your parents can claim you on their return
• The student may not be an eligible dependent
• Scholarships exceed the education expenses
• There is no taxable income in your return
• Education Savings Account exceed the education expenses
• Qualified Tuition Program exceed the education expenses

Think you should qualify?

1. Sign in and Continue your/take me to my return
2. Go to Federal Taxes, then Deductions and Credits
3. Edit/Add/Start for Expenses and Scholarships (Form 1098-T)
4. On Your Education Expenses Summary, Add Another Student/Delete existing information
   
   Manually enter your education expenses and information. TurboTax will tell you if you qualify (and if not, why not)