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splurgey
New Member

I was on track for a 4 year degree. I graduated in December 2021 with a 2year degree. Can I claim the AOTC on my 2021 taxes? Claiming my self.

I was claimed as a dependent my first 2 years of college. 3rd year I claimed myself. I meet all other requirements (full time student) etc
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2 Replies
MinhT1
Expert Alumni

I was on track for a 4 year degree. I graduated in December 2021 with a 2year degree. Can I claim the AOTC on my 2021 taxes? Claiming my self.

Yes if you meet all the requirements.

 

To be eligible for AOTC, the student must:

 

  • Be pursuing a degree or other recognized education credential
  • Be enrolled at least half time for at least one academic period* beginning in the tax year
  • Not have completed the first four years of higher education at the beginning of the tax year
  • Not have claimed the AOTC or the former Hope credit for more than four tax years
  • Not have a felony drug conviction at the end of the tax year
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Hal_Al
Level 15

I was on track for a 4 year degree. I graduated in December 2021 with a 2year degree. Can I claim the AOTC on my 2021 taxes? Claiming my self.

Are you sure you meet all the requirements for claiming yourself , on your tax return?  Full time students, under 24, seldom do. 

 

 

There are two types of dependents, "Qualifying Children"(QC) and Other ("Qualifying Relative" in IRS parlance even though they don't have to actually be related). There is no income limit for a QC but there is an age limit, student status, a relationship test and residence test.

A child of a taxpayer can still be a “Qualifying Child” (QC) dependent, regardless of his/her income, if:

  1. He is under age 19, or under 24 if a full time student for at least 5 months of the year, or is totally & permanently disabled
  2. He did not provide more than 1/2 his own support. Scholarships are excluded from the support calculation
  3. He lived with the parent (including temporary absences such as away at school) for more than half the year

 

So, it doesn't matter how much he earned. What matters is how much he spent on support. Money he put into savings does not count as support he spent on him self.

The support value of the home, provided by the parent, is the fair market rental value of the home plus utilities & other expenses divided by the number of occupants.

 

See full dependent rules at: https://turbotax.intuit.com/tax-tools/tax-tips/Family/Rules-for-Claiming-a-Dependent-on-Your-Tax-Ret...

 

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. You usually must have actually paid tuition, not had it paid by scholarships & grants.  It is usually best if the parent claims that credit. 

 

 

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

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