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Why do I not qualify for the American Opportunity Credit? On TurboTax, it looks like I meet all the requirements?

 
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2 Replies
NicolleR1
Employee Tax Expert

Why do I not qualify for the American Opportunity Credit? On TurboTax, it looks like I meet all the requirements?

See the eligibility requirements 

 

https://turbotax.intuit.com/tax-tips/college-and-education/what-is-the-american-opportunity-tax-cred...

 

Also, are you being claimed on your parents tax return? If you are being claimed as a dependent on your parents return, you will not be able to get the credit on your own. Your parents might be eligible for the credit, if that is the case. 

Hal_Al
Level 15

Why do I not qualify for the American Opportunity Credit? On TurboTax, it looks like I meet all the requirements?

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. It is usually best if the parent claims that credit. 

You cannot claim the (up to) $1000 refundable credit if you are, or can be, claimed as a dependent by someone else.

Reference: Line 7 instructions for form 8863.

https://www.irs.gov/instructions/i8863#en_US_2024_publink53002gd0e674

When TurboTax sees that you are a FT student, under 24, it will add an earned income support question to the interview. The earned income support question is part of the personal info interview, not  the education interview.

 

If you are eligible, you have answered  something wrong, in the interview. But, a lot of people are just not eligible. See Also see this TT support article https://turbotax.intuit.com/tax-tips/college-and-education/what-are-education-tax-credits/L7TuLrVqZ

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-credits-deductions/education-tax-cre... shorter

 https://www.irs.gov/Individuals/AOTC

https://www.irs.gov/newsroom/american-opportunity-tax-credit-questions-and-answers

https://www.irs.gov/credits-deductions/individuals/education-credits-questions-and-answers

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