AOC

[clouise]

My son was a student last year. He was 24, so we no longer claim him as a dependent. On our joint return, we couldn't claim the AOC for him though we tried for 4 years. Last year was his last year in college. Can he claim the AOC deduction even though we would have for 4 years if we could have?

[xmasbaby0]

The AOC can be used a total of four times for a student's undergraduate college education.  If the student is a dependent then the credit goes on the parents' return.  If the student is not a dependent, then the student can use the credit on his own return if he meets the other eligibility requirements to get the AOC.

https://ttlc.intuit.com/questions/3262983-who-is-eligible-to-take-the-american-opportunity-tax-credi...

[Hal_Al · Accepted solution]

Q.  Can he claim the AOC deduction even though we would have for 4 years if we could have?

A. Yes.  You must have actually claimed the credit for it to count for the 4 times. Coulda, woulda, shoulda doesn't count.

Q.  He was 24, so we no longer claim him as a dependent. Right?

A.  Turning 24 doesn't disqualify him as your dependent. But, being 24+ and having more than $4200 of taxable income does disqualify him.

There are two types of dependents, "Qualifying Children"(QC) and standard ("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. Only a QC qualifies a taxpayer for the Earned Income Credit.

A person can still be a Qualifying relative dependent, if not a Qualifying Child, if he meets the 6 tests for claiming a dependent:

1. Closely Related OR live with the taxpayer ALL year 
2. His/her gross taxable income for the year must be less than $4200 ($4150 in 2018)
3. The taxpayer must have provided more than 1/2 his support

In either case:

4. He must be a US citizen or resident of the US, Canada or Mexico
5. He must not file a joint return with his spouse or be claiming a dependent of his own
6. He must not be the qualifying child of another taxpayer

On our join

t return, we couldn't claim the AOC for him though we tried for 4 years. Last year was his last year in college.