Why don't I qualify for the American Opportunity Credit if I made less than $10K, am independent, was full time, haven't taken the credit before, and have 0 drug charges?

[pmred]

Do I have to currently be a student in order to qualify?

[MinhT1]

To be eligible for AOTC, the student must:

• Be pursuing a degree or other recognized education credential
• Be enrolled at least half time for at least one academic period* beginning in the tax year
• Not have completed the first four years of higher education at the beginning of the tax year
• Not have claimed the AOTC or the former Hope credit for more than four tax years
• Not have a felony drug conviction at the end of the tax year

The AOC has two parts:

- the non-refundable part which can be up to $1,500

- and the refundable part which can be up to $1,000.

If your income is less than the standard deduction ($12,950 for a single person), then you have no taxable income and no tax liability, and you cannot benefit from the non-refundable part.

Also, if you can be claimed as a dependent by another taxpayer (even if you are not actually claimed), then you are not eligible for the refundable part.

[Hal_Al]

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 a 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