My parents are going nuts that they can't claim me as a dependent because I am 25, but because of my loans and grant money I am able to pay for my needs, school, and any bills or transportation I have. I don't have an income because I go to school taking 23 to 30 credits per semester at a time.
The IRS website says I have to fill out form 8863 and attach it to my 1040 or 1040A, but how do I do that if I have no income? How do I file it in general? Can I do it on TurboTax? What steps do I take? This is making my head spin.
If the AOTC had been claimed four years for you, the Lifelong Learning Credit is a nonrefundable credit which means with no income you would not get a refund.
In Turbo Tax, be sure you carefully answer the questions about the scholarship, grants, tuition and expenses so that you receive the correct credit. This is one of the areas that the IRS audits the most so please be sure to document and keep records for all payments that you made.
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