Form 8863 Line 7: How do I get TurboTax to check the box on Line 7 of Form 8863?

[AMTques]

My son is not a dependent this year but still is under 24 and did not provide over 1/2 support because was student until June (and we paid tuition, etc. while in school). So is not eligible for refundable part of American Opportunity Credit.

I can't find anywhere on TurboTax that results in Box to be checked on Line 7 of Form 8863.

[brianbeccaf]

Whenever I need to do something like this, click on View at the top, then select Forms, then on left pick the form you want. Make changes. Then go to View at the top and choose Step-by-Step. I do this a lot. Even for forms that are no longer needed and error out upon review. You can use this method, pick the form, and at the bottom select Delete Form and return to Step-by-Step. Personally I would pull up form 8863 in this manner, delete it, then go into the Education Section and revisit it again!

[soldalina]

I also need to check the box on Line 7 of Form 8863, because my daughter is under 24 and I claim her as a dependent. But I can find nowhere in the turbotax online platform that takes me directly to that form in order for me to check that box.  Can someone provide detailed instructions on how to do this in my 2022 tax return? Thanks!

[KrisD15]

Only the Desktop TurboTax programs has a "Forms" mode. 

Are you wanting to allow the student to claim the non-refundable portion of an education credit? 

The box on Form 8863 Line 7 would only be checked if the 1098-T is being entered into the Student's return and  the student wants to take the non-refundable part of the credit. 

This is only allowed if the Taxpayer (usually parent) agrees to not claim the student. In this situation, NOBODY claims the student. 

This is not often advantageous to either the student nor the parent, but there are situations where the parent gets no benefit claiming the student, and the student has a tax lability that the non-refundable credit can offset. 

If this is what you are trying to do, when you enter the Personal Information in the Student's return, be sure to select BOTH 

Yes, Another taxpayer can claim me

No, Another taxpayer will not claim me

Next, after the student enters the education section information, that box on the 8863 will be checked. 

@soldalina 

[soldalina]

Hi @KrisD15 

Thank you for the information! This is very helpful. The student has no tax liability and is not trying to claim the non-refundable portion of an education credit.

[KrisD15]

Ok, then that box does not get checked. 

I am adding the portion of the IRS instructions that pertain to the box on line 7,

but the point is that if you are claiming the student, and you are getting an education credit, that box does not get checked. 

If there is a credit, and the student is your dependent, your return will have Form 8863 and the credit. 

Again, that box is for the very uncommon situation where a DEPENDENT student can get PARTIAL credit if no one claims the student and no one else claims the credit.  

According t the IRS:

Line 7

If you were under age 24 at the end of 2022 and the conditions listed below apply to you, you cannot claim any part of the American opportunity credit as a refundable credit on your tax return. Instead, you can claim your allowed credit, figured in Part II, only as a nonrefundable credit to reduce your tax.

You don't qualify for a refundable American opportunity credit if 1 (a, b, or c), 2, and 3 below apply to you.

1.You were:

 a.Under age 18 at the end of 2022, or

 b.Age 18 at the end of 2022 and your earned income (defined later) was less than one-half of your support (defined later), or

 c.Over age 18 and under age 24 at the end of 2022 and a full-time student (defined later) and your earned income (defined later) was less than one-half of your support (defined later).

2.At least one of your parents was alive at the end of 2022.

3.You're not filing a joint return for 2022.

If you meet these conditions, check the box next to line 7, skip line 8, and enter the amount from line 7 on line 9. If these conditions don't apply to you, complete line 8.

You can answer the following questions to determine whether you qualify for a refundable American opportunity credit.

1. Were you under age 24 at the end of 2022?

If no, stop here; you do qualify to claim part of the allowable American opportunity credit as a refundable credit.

If yes, go to question 2.

1. Were you over age 18 at the end of 2022?

If yes, go to question 3.

If no, go to question 4.

1. Were you a full-time student (defined later) for 2022?

If no, stop here; you do qualify to claim part of your allowable American opportunity credit as a refundable credit.

If yes, go to question 5.

1. Were you age 18 at the end of 2022?

If yes, go to question 5.

If no, go to question 6.

1. Was your earned income (defined later) less

than one-half of your support (defined later) for 2022?

If no, stop here; you do qualify to claim part of your allowable American opportunity credit as a refundable credit.

If yes, go to question 6.

1. Were either of your parents alive at the end of 2022?

If no, stop here; you do qualify to claim part of your allowable American opportunity credit as a refundable credit.

If yes, go to question 7.

1. Are you filing a joint return for 2022?

If no, you don't qualify to claim part of your allowable American opportunity credit as a refundable credit.

If yes, you do qualify to claim part of your allowable American opportunity credit as a refundable credit.

[LindaSch]

Very confusing wording.  So if a student is not claimed by anyone then they cannot take the Refundable version.  Box would be checked.

If you are claimed by someone then you can take theoretically both nonrefundable and refundable depending on the situation.  Box would be unchecked.

The wording does not really imply this but just the opposite.  It should state "If you were under age 24 and NOT claimed by anyone else and meet the conditions..."

Am I correct in this explanation?