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Jake_32
New Member

I have a son attending college. I need help understanding how to his funds so that he can qualify for the American Opportunity Credit (AOC).

I have a son attending college.  I have verified that he meets the requirements to be claimed as my dependent.   He has scholarships, grants, personal money and a student loan to cover the costs.  I need help understanding how to apply these monies so that he can qualify for the American Opportunity Credit (AOC).  I have read the instructions for Form 8863.  Examples 1 and 2 on page 5 elude to applying his personal money or student loan funds to the qualified education expenses in the amount of $4000. Then the other money covering room and board would show up as taxable and he could then file a tax return and get the AOC or some prorated portion of it.   His monies from these sources are all sent to the college.  Is this scenario correct? Can we just state which money was used for which purpose?  Thanks.  Confused college student parent

1 Best answer

Accepted Solutions
KrisD
Intuit Alumni

I have a son attending college. I need help understanding how to his funds so that he can qualify for the American Opportunity Credit (AOC).

Yes, enter the 1099-Q (if there is one for a college savings fund) and the 1098-T on your return. 

This is entered under Education in the Deductions & Credits section of the Federal return. 

Continue through all the interviews. Be sure you go through the "Education Information" interview.

You'll know you've finished when you get to "Maximize My Education Tax Break"

The program should select the credit that gives you the best tax break. 

Please review by going back through the "Education Information" interview, on the last screen the program will say how much of the expenses are being allocated to a credit. If you are eligible for the American Opportunity Tax Credit, make sure the allocation is at $4,000 and if not change it to 4,000 and again click "Maximize My Tax Break" 

You can also switch to Forms and look at line 17 of the "Student's Wks"

If the student needs to claim income in order for you to get a credit, your program will tell you what the student needs to claim on the student's return (if any). 

View solution in original post

1 Reply
KrisD
Intuit Alumni

I have a son attending college. I need help understanding how to his funds so that he can qualify for the American Opportunity Credit (AOC).

Yes, enter the 1099-Q (if there is one for a college savings fund) and the 1098-T on your return. 

This is entered under Education in the Deductions & Credits section of the Federal return. 

Continue through all the interviews. Be sure you go through the "Education Information" interview.

You'll know you've finished when you get to "Maximize My Education Tax Break"

The program should select the credit that gives you the best tax break. 

Please review by going back through the "Education Information" interview, on the last screen the program will say how much of the expenses are being allocated to a credit. If you are eligible for the American Opportunity Tax Credit, make sure the allocation is at $4,000 and if not change it to 4,000 and again click "Maximize My Tax Break" 

You can also switch to Forms and look at line 17 of the "Student's Wks"

If the student needs to claim income in order for you to get a credit, your program will tell you what the student needs to claim on the student's return (if any). 

View solution in original post

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