This question is a trade-off between a $500 child credit on my parents' return v. a larger App Opp Credit on the my return. I have found conflicting advice on this question. Page 20 of Pub 970 states, "If you . . . don't claim on your tax return a dependent who is an eligible student (even if entitled to claim the dependent), THEN only . . . the dependent can claim the American opportunity credit. You can't claim the credit based on this dependent's expenses." Also, the flowchart on page 13 asks the question "Are you listed as a dependent on another person's tax return?" It does not as "Are you eligible to be listed as a dependent on another's return?"
To the contrary, it seems clear than for Personal Exemptions (back when they were relevant), someone who is eligible to be claimed as a dependent on another's return could not claim a personal exemption for themselves.
Any thoughts?
