Get your taxes done using TurboTax

1. The student may not get as much credit as a parent since AOTC reduces your tax liability and is only partially refundable (up to $1,000). A parent claiming the child has a higher chance of getting the full $2,500 credit.

I suggest looking at the IRS Worksheet for Determining Support. Vacations, lodging, many things go into supporting a student. If the student is providing half of their support, then they should file their own return and claim the credit.

2. Can be claimed and is claimed has a lot of area to cover and questions in between. For example, if the parents are both disabled and don't file a return, the child isn't being claimed but could, if the parents were filing. The program walks through all the necessary questions, including if you have a parent alive, and will determine which of the rules apply to the education credit.

References:

Rules for Claiming Dependents on Taxes - TurboTax - Intuit

AOTC - American Opportunity Tax Credit -IRS