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mimi-he
New Member

I updated my personal information to claim myself. I should qualify for the american opportunity credit but the turbotax form says I did not qualify. How to fix this.

 
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2 Replies

I updated my personal information to claim myself. I should qualify for the american opportunity credit but the turbotax form says I did not qualify. How to fix this.

Can your parent claim you? If so, it is usually better that they claim that credit if qualified to do so. 

Hal_Al
Level 15

I updated my personal information to claim myself. I should qualify for the american opportunity credit but the turbotax form says I did not qualify. How to fix this.

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, even if you don't qualify as a dependent, 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. 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, even if they don't actually claim you.

 

Reference: Line 7 instructions for form 8863. https://www.irs.gov/instructions/i8863

 

If you are eligible, you have answered  something wrong, in the interview. But, a lot of people are just not eligible. 

References:

 https://ttlc.intuit.com/questions/3383321-why-didn-t-i-get-a-credit-or-deduction-for-education-expen...

 https://www.irs.gov/Individuals/AOTC

https://www.irs.gov/newsroom/american-opportunity-tax-credit-questions-and-answers

https://www.irs.gov/credits-deductions/individuals/education-credits-questions-and-answers

https://ttlc.intuit.com/community/college-education/discussion/i-have-a-1098-t-form-that-i-received-... 

 

While technically there is a provision that allows a student-dependent to claim a federal tuition credit, from a practical matter it seldom works out.  A student, under age 24, is only eligible for the refundable portion of the American Opportunity Credit (AOTC) if he/she supports himself by working.  

If the student actually has a tax liability, there is a provision to allow him to claim a non-refundable tuition credit. But then the parent must forgo claiming the student as a dependent, and the $500 other dependent credit.  The student must still indicate that he can be claimed as a dependent, on his return. This is worth up to $2500 (AOTC shifts to all non refundable)

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