Never qualify for the AOTC credit

[jamariporter]

I’ve been in college since 2012 and I just found out about the AOTC form this year .when I filed my taxes last year and added my school 1098t turbo tax told me I didn’t qualify because 

1. No taxable income 

2. Scholarship and grants and other tax free exceeds educational expense 

3.there were no net qualified education expense

can someone help me understand please  

[xmasbaby0]

Have you been a dependent on someone else's tax return?  A dependent cannot get education credits but the person who claims them as a dependent can get the credit.  If you were not a dependent you can only amend as far back as 2016 to seek the credit.

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

https://ttlc.intuit.com/questions/1900981-can-i-deduct-education-expenses-that-were-paid-with-studen...

https://ttlc.intuit.com/questions/1901172-what-are-education-tax-credits

https://www.irs.gov/help/ita/am-i-eligible-to-claim-an-education-credit

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

[Carl]

turbo tax told me I didn’t qualify because

1. No taxable income

If you had no taxable income in 2019, then it's quite apparent that you qualify as a dependent on someone else's tax return; more than likely your parent's tax return. With that, you should not be reporting "any" education stuff on your tax return at all - if you're even required to file a tax return. With no taxable income for 2019, I wonder if you have "any" earned income in 2019. If not, then why are you filing a tax return? Maybe you have excess scholarship/grant/529 distributions that would be taxable income to you? That's the only reason I can come up with at this point, as to why you would file a tax return for 2019 at all.

I’ve been in college since 2012

Almost 8 years thus far? My guess is that you must be studying in the medical field for something highly specialized, such as a surgeon of some type. That would also mean you are over the age of 23 on Dec 31 of the tax year, and at best you might qualify as a "relative dependent" on your parents tax return. But I doubt that since the relative dependent rules require them to provide more than half of your support for the entire year (the child dependent rules do not have that requirement.)

Basically, to qualify for any education credits you must have "EARNED" income that is reported to you on either a W-2, or on a 1099-MISC in box 3 or 7. Anything else is not "earned" income.

[jamariporter]

I’m 28 years old I have a son no one can file me in their taxes and yes I’m in school to be a nurse I’ve had a job since 14 and when I talk to the yes I don’t qualify because of the scholarships I get and because of grants and I had an earned income credit 

[jamariporter]

No I have not been a spent on someone else’s taxes ...okay I’m going to amend my taxes because I never received the credit and I just found out about it this past week 

[Hal_Al]

You don't qualify for the AOTC because you paid no expenses (your scholarships paid them, not you). 

But, there is a tax “loophole” available. The student reports all his scholarship, up to the amount needed to claim the American opportunity credit, as income on his return. That way, you can claim the tuition credit. You can do this because that much tuition was no longer paid by "tax free" scholarship.  You cannot use this loop hole if the school’s billing statement specifically shows the scholarships being applied to tuition or if the conditions of the grant are that it be used to pay for qualified expenses.

Using an example: Student has $10,000 in box 5 of the 1098-T and $8000 in box 1. At first glance he/she has $2000 of taxable income  can not claim the American opportunity credit. But if she reports $6000 as income on her return, she can then  claim $4000 of qualified expenses on her return.