I am a student and my parents were eligible to get an American Opportunity Credit but decided to have me claim it on my return. How do I do that?

The year in question is 2022 and I already filed my return so I need to file an amended return. I am able to get the 1099Q into the return but not the Form 8863 because that form was sent to my parents with their social security number on it. The input forms are normally looking for the parents information because the credit is normally taken by them. Thae AOC rules do allow for the student to take the credit.

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I am a student and my parents were eligible to get an American Opportunity Credit but decided to have me claim it on my return. How do I do that?

also, AOC is largely based on the numbers displayed on form 1098-T. (that is the form that would generate form 8863.)

In fact, it is possible that if money was withdrawn from a 529 plan, which is what generates form 1099-Q, you may not be eligible for AOTC.

best to post what is on form 1099Q and 1098-T. from that a better answer can be provided.

Also, how only are you and are your earning less than 50% of your support costs. and how much did you earn in 2022?

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I am a student and my parents were eligible to get an American Opportunity Credit but decided to have me claim it on my return. How do I do that?

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. She cannot be supporting herself on student loans & grants and 529 plans and parental support. It is usually best if the parent claims that credit. So, it may be them that needs to file an amended return for 2022, not you.

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 (not $1500, as the AOTC shifts to all non refundable). TurboTax can/will handle this.

Q. I am a student and my parents were eligible to get an American Opportunity Credit but decided to have me claim it on my return. How do I do that?

A. In TurboTax (TT), enter at:

Federal Taxes Tab (Personal for H&B version)

Deductions & Credits

“I’ll choose what I want to work on” button (if presented)

-Scroll down to:

--Education

--Education Expenses and Scholarships (1098-T)

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I am a student and my parents were eligible to get an American Opportunity Credit but decided to have me claim it on my return. How do I do that?

If you can be claimed as a dependent but are not being claimed does not mean you are not a dependent. You must enter on your tax return that you can be claimed as a dependent which therefore negates your ability to claim the AOC on your tax return without any earned income.

I am a student and my parents were eligible to get an American Opportunity Credit but decided to have me claim it on my return. How do I do that?

If otherwise qualified you the dependent student can receive AOC if not claimed by the parent but the student will not receive the refundable portion of the credit. As mentioned, the student still has to answer the they can be claimed as a dependent but indicate that they are not being claimed.

I am a student and my parents were eligible to get an American Opportunity Credit but decided to have me claim it on my return. How do I do that?

Claiming AOTC does not require you to be claimed by your parents and that is true whether they can claim you and not.

AOTC has two components - the non-refundable portion and the refundable portion.

On the non-refundable portion, the maximum credit is $1500. Unfortunately, if your income is less than the standard deduction ($13,850), there would be no tax credit. The credit can lower what is on Line 22 by up to $1500, and it does depend on your Qualified Educational Expenses exceeding your scholarships by at least $4000.

On the refundable portion, if all ALL THREE items below are true, you are not eligible for the refundable portion:

1) At least one parent is alive

2) you filing status is other than Married Filing Joint

3) you are under 24 and your earned income is less than 50% of your support costs.

if you are eligible for the refundable portion it is worth up to $1000 and again depends on your QEE exceeding your scholarships by at least $4000.

I am a student and my parents were eligible to get an American Opportunity Credit but decided to have me claim it on my return. How do I do that?

also, AOC is largely based on the numbers displayed on form 1098-T. (that is the form that would generate form 8863.)

In fact, it is possible that if money was withdrawn from a 529 plan, which is what generates form 1099-Q, you may not be eligible for AOTC.

best to post what is on form 1099Q and 1098-T. from that a better answer can be provided.

Also, how only are you and are your earning less than 50% of your support costs. and how much did you earn in 2022?

I am a student and my parents were eligible to get an American Opportunity Credit but decided to have me claim it on my return. How do I do that?

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. She cannot be supporting herself on student loans & grants and 529 plans and parental support. It is usually best if the parent claims that credit. So, it may be them that needs to file an amended return for 2022, not you.

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 (not $1500, as the AOTC shifts to all non refundable). TurboTax can/will handle this.

Q. I am a student and my parents were eligible to get an American Opportunity Credit but decided to have me claim it on my return. How do I do that?

A. In TurboTax (TT), enter at:

Federal Taxes Tab (Personal for H&B version)

Deductions & Credits

“I’ll choose what I want to work on” button (if presented)

-Scroll down to:

--Education

--Education Expenses and Scholarships (1098-T)

I am a student and my parents were eligible to get an American Opportunity Credit but decided to have me claim it on my return. How do I do that?

You say " I am able to get the 1099Q into the return". The answers assume you meant 1098-T.

Form 1098-T, not 1099-Q, is what you enter to claim the education credit. The 1099-Q is for a distribution from a 529 or ESA plan and usually does not need to be entered, at all, unless you know some of it is taxable because the amount of the distribution exceeds qualified expenses (after adjusting for the turion credit or tax free scholarships).

I am a student and my parents were eligible to get an American Opportunity Credit but decided to have me claim it on my return. How do I do that?

Thank you for pointing out those facts. I was unaware of those complexities.

I am a student and my parents were eligible to get an American Opportunity Credit but decided to have me claim it on my return. How do I do that?

thank you.

Good to know.

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