My daughter is 21 & a full time student. She worked part time last year. I let her use her own 1098-T. Can I claim her as a dependent and get the Am Opp Tax Credit?

[AmyW]

Yes, you may be able to claim your daughter as a qualifying child if:

• She is under 19, or a full-time student and under 24 years of age. There is no age limit if she is permanently and totally disabled.
• She lives with you for more than half of the year (Temporary absences, like going to college does not count)
• You provided more than half of her support for the tax year
• You are the only person claiming her

See the article below for the rules about claiming a qualifying child. 

https://turbotax.intuit.com/tax-tools/tax-tips/Family/Tax-Exemptions-and-Deductions-for-Families/INF...

Here is a worksheet that will help you determine if you provide more than half of your daughter's support:

https://apps.irs.gov/app/vita/content/globalmedia/teacher/worksheet_for_determining_support_4012.pdf

If you are claiming your daughter as a dependent, then you will enter the 1098-T. If she is not being claimed on your taxes, then she would enter the 1098-T.

To learn more about the 1098-T and how to enter it, see the article below:

https://ttlc.intuit.com/replies/4194409

[alphavolvo]

If I am letting her enter the 1098-T on her tax return to help reduce her tax responsibilities, then I can't claim her as a dependent and I won't be able to claim the American Opportunity Tax Credit, correct?

[AmyW]

If you are eligible to claim her as a dependent (using the rules I posted above), but choose to NOT claim her, she will still not be able to take her $4,050 personal exemption this year.  No one will get that exemption.

Given that, she can still file claiming herself (without the exemption) and include the 1098-T on her return.  If she qualifies for the AOTC, she will only get the amount up to her tax liability.  She will not get the extra "refundable" amount.  

The other option is for you to file, claiming her AND the 1098-T.  You would then receive any AOTC available based on her education expenses and 1098-T information.

So, in the majority of situations, it is more beneficial for the parent to claim the student as a dependent if they meet the dependency tests.

If she has already filed claiming herself, she can file an amended return to 'unclaim' herself."

Amended returns must be filed by mail.

To amend a 2016 return, follow the steps in the article below: <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/3061514-how-do-i-amend-a-2016-return-in-turbotax">https://ttlc.int...>