Basically, if he provided more than half of his food, lodging, utilities, clothing, medical and dental expenses, then he would have paid more than 50% of his own expenses with the money he earns. Scholarships do not count as part of the equation. So if he is using scholarship money for any of his expenses, that does not count. Sharing a house with 4 others, does not affect the calculations as he is still paying his 1/5 of the rent and utilities. So whatever his costs are, is what would be considered his rent and such.
You can use this worksheet to determine if he paid over half of his own support or not.
If he did not provide over half of his support, and he is under 24, if you choose not to claim him as a dependent so he can claim the AOTC, he would only be eligible for the nonrefundable portion of the credit.
"If you were under age 24 at the end of 2023 and the conditions listed below apply to you, you cannot claim any part of the American opportunity credit as a refundable credit on your tax return. Instead, you can claim your allowed credit, figured in Part II, only as a nonrefundable credit to reduce your tax.
You don't qualify for a refundable American opportunity credit if 1 (a, b, or c), 2, and 3 below apply to you.
1. You were:
a. Under age 18 at the end of 2023, or
b. Age 18 at the end of 2023 and your earned income (defined later) was less than one-half of your support (defined later), or
c. Over age 18 and under age 24 at the end of 2023 and a full-time student (defined later) and your earned income (defined later) was less than one-half of your support (defined later).
2.At least one of your parents was alive at the end of 2023.
3.You're not filing a joint return for 2023." Instructions for form 8863
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