There's a new urban myth among college
students that says they can get a $1000 from the government just for filing a
tax form. For most of them, they simply aren't eligible. A student, under age
24, is only eligible for the refundable portion of the American Opportunity Credit if he supports himself by working. You
cannot be supporting yourself on parental support, 529 plans or student loans
& grants. You must have actually paid tuition, not had it paid by scholarships
& grants. It is usually best if the
parent claims that credit.
You cannot claim a credit if you are, or can
be, claimed as a dependent by someone else.
While technically there is a provision that
allows you to claim a tuition credit, from a practical matter it seldom
works out. If the student actually has a tax liability he
can claim a non-refundable credit but then the parent must forgo claiming the
student's dependent credit and the student still can’t claim himself.
