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Hi BrianJory,

Thank you for asking. Yes, your stepdaughter may qualify for the American Opportunity Tax Credit since she is a US primary resident and here is detailed qualifications for the credit: 

• You paid an eligible student's qualified education expenses for higher education at any college, university, or vocational school with a student aid program administered by the US Department of Education
• The eligible student is you, your spouse, or a dependent on your return
• For the full credit, your MAGI (modified adjusted gross income) is less than $90,000 ($180,000 if you're filing jointly)
  • For a reduced credit, your MAGI is between $80,000 and $90,000 ($160,000 and $180,000 if you're filing jointly)

An eligible student is defined as a student who:

• Is enrolled at least half-time in a program leading to a degree, certificate, or other recognized credential
• Had at least one academic period beginning during the year
• Didn't claim the American Opportunity Tax Credit for more than three previous years
• Didn't complete the first four years of post-secondary education before the beginning of the year

The American Opportunity Tax Credit cannot be claimed on Married Filing Separately returns nor under any of these conditions:

• The student is a dependent on someone else's return
• The student is a nonresident alien (unless the student's spouse is a resident and they file a joint return treating both as residents, or the parents claim the student as a dependent on their joint return)
• The student had a felony drug conviction

Usually, room and board deductible is not deductible unless it was paid with Coverdell ESA or 529 and here are the expenses qualify for American Opportunity Tax Credit. Here is more details from IRS regarding Form 8863. 

I hope the above information helps and answer your questions. Please feel free to contact us if you have further questions. We are always here to help and support.  We wish you have a wonderful day and thank you for choosing TurboTax!