How come TurboTax will allow my daughter (a college student) to claim LLC credit when she checks the box "someone else can claim me as a dependent"?

Forum|Forum|3 months ago
April 8, 2026
2 replies
95 views

In her turboxtax, she did select "someone else will NOT claim me as a dependent" in their tax return since I don't plan on claiming her as a dependent even though I'm still support her financially in everything.

TurboTax Online

MinhT1

Level 15

TurboTax is correct.

A taxpayer who can be claimed as a dependent by another taxpayer but is not actually claimed is eligible for the LLC (which is nonrefundable) if she has a tax liability and satisfies all the other requirements. She is also eligible for the nonrefundable portion of the AOTC, but not the refundable portion.

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Hal_Al

Level 15

While technically there is a provision that allows your student-dependent to claim a federal tuition credit, from a practical matter it seldom works out. A full time student, under age 24, is only eligible for the refundable portion of the American Opportunity Credit (AOTC) if he/she supports himself by working. She cannot be supporting herself on student loans & grants and 529 plans and parental support. It is usually best if the parent claims that credit.

If the student actually has a tax liability, there is a provision to allow him to claim a non-refundable tuition credit (AOTC or LLC). But then the parent must forgo claiming the student as a dependent, and the $500 other dependent credit. The student must still indicate that he can be claimed as a dependent, on his return. This is worth up to $2500 (AOTC shifts to all non refundable). The LLC is $2000 maximum.