American opportunity credit

Forum|Forum|7 years ago
June 5, 2019
25 replies
89 views

My son did not work this summer, so will not have a W2 to file any earned income tax. Is he still able to file for this credit? I make too much money to gain from it. Thank you!

TurboTax Deluxe Online

Best answer by Hal_Al

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.

mrsbuzzAuthor

Level 2

He wasn't last yr because he made just above the income limit. This year, no income. Thanks.

SweetieJean

Alumni - Champ

Is he your tax dependent?

SweetieJean

Alumni - Champ

Was he under age 24 last year?

mrsbuzzAuthor

Level 2

He is 23 years old. Full time student.

SweetieJean

Alumni - Champ

Then likely he could not claim it for 2015 either. See answer below.

SweetieJean

Alumni - Champ

You (and he) will have to file 2015 amended returns.

Hal_Al

Level 15

You say he wasn't your dependent last year "because he made just above the income limit". There is no income limit, for a qualifying child dependent.
There are two types of dependents, "Qualifying Children"(QC) and standard ("Qualifying Relative" in IRS parlance even though they don't have to actually be related). There is no income limit for a QC but there is an age limit, a relationship test and a residence test.

A child of a taxpayer can still be a “Qualifying Child” (QC) dependent, regardless of his/her income, if:
1. He is under age 19, or under 24 if a full time student for at least 5 months of the year, or is totally & permanently disabled
2. He did not provide more than 1/2 his own support. Scholarships are considered third party support and not as support provided by the student.
3. He lived with the parent (including temporary absences such as away at school) for more than half the year

So, it doesn't matter how much he earned. What matters is how much he spent on support. Money he put into savings does not count as support he spent on him self.
The support value of the home you provided is the fair market rental value of the home plus utilities & other expenses divided by the number of occupants.

Furthermore, there is a rule that says IF somebody else CAN claim him as a dependent, he is not allowed to claim his own exemption. If he has sufficient income (usually more than $6300), he can & should still file taxes; he just doesn’t get his own $4050 exemption (deduction). In TurboTax, he indicates that somebody else can claim him as a dependent, at the personal information section.