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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 full time unmarried student, under age 24, even if you don't qualify as a dependent, 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 usually 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 that credit if you are, or can be, claimed as a dependent by someone else.
That is the only refundable education credit. If you have no tax liability to claim a tax credit against, you credit is 0. The Tuition and Fees deduction also (usually) lowers your state taxable income.
My daughter is under 24 and filing married filing jointly. It is not giving her the refundable credit. Why? My understanding is she would not get it if filing married filing separately.
She's entered something wrong.
Thank you. I finally figured it out. I had not yet entered the spouse tax id. It will not calculate the credit until one is entered.
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