American opportunity credit

[mrsbuzz]

Understood.  Thank you.

[SweetieJean]

Let me clarify: To be a dependent, HIS income does not matter if he is under age 24, as long as he does not provide more than 50% of his own support.

[mrsbuzz]

Thank you.

[mrsbuzz]

I  think the confusion (past) occurred because he was not always "half-time or greater" enrolled in college.  He was half-time during Spring 2017 semester and is full-time enrolled for this fall semester of 2017.

[Hal_Al]

To claim the AOC, the student must be half time or more; whether it is the student or the parent claiming the credit. Then there's the additional requirements to claim the refundable portion of the AOC.

For the parent to claim the student as a Qualifying Child dependent; the student must be FULL TIME for parts of 5 calendar months. If not, the student may still qualify as a Qualifying Relative, but then there is an income test and it's only $4050.

[mrsbuzz]

Thank you! Very helpful.

[Hal_Al · Accepted solution]

No, he cannot claim the credit if he is under age 24.

Even if he had earned income, he does not automatically qualify for the credit.   A student, under age 24, is only eligible if he supports himself by working . You cannot be supporting yourself on student loans & grants. He/she does not qualify for the (up to) $1,000 refundable portion of the American Opportunity Credit (AOC) if items 1, 2, and 3 below apply to him. 

1. He was:
.....a. Under age 18 at the end of 2014, or 
......b. Age 18 at the end of 2014 and his earned income was less than one-half of his support, or 
......c. A full-time student over age 18 and under age 24 at the end of 2014 and his earned income was less than one-half of his support .
2. At least one of his parents was alive at the end of 2014.
3. He is not filing a joint return with his spouse for 2014.

[Hal_Al]

Note that was not eligible for the refundable portion of the AOC last year, either. But, if he had enough income to have a tax liability, he may claim the non-refundable portion

[SweetieJean]

Even if he qualified to be a dependent?  OP seems to think that student's income is the only controlling factor in determining  dependency.
"Is he your tax dependent?" "He wasn't last yr because he made just above the income limit."

[Hal_Al]

Yes. If he qualified to be a dependent, then usually only the parents can claim the credit. But they have too much income. There is a special rule that allows the student to claim the non refundable portion of the AOC. But there is a condition (a big condition). The parents have to forego his exemption and he still doesn't get to claim his own exemption!

[mrsbuzz]

Thanks. Confused.  Will continue to research.