Thanks for replying once again. Preparing my taxes has been so very challenging to me this year. I have a few follow-up questions and some additional information.
Regarding where to input Room & Board:
There is no prompt in “Here’s Your Education Summary” for room & board. When I select edit to “Other Education Expenses” it asks, “Did Marie Pay for Books or Materials to attend school?” There’s is then a line referring to deductions of books/supplies and it also references room and board. I check the Yes box. Then scroll down to “Enter Marie’s Education Expenses”. The only three options to enter expenses are Tuition (this is populated already), books required from school and books not required.
I have now entered the 1099-Q info and TT indicates the student beneficiary must report $21,821 of taxable income. No doubt this is because of the missing R&B.
My income sources are Interest, Dividends, Long-term Capital Gains (49% of Line 9)& IRA Distribution (Roth conversion)
Federal 1040 worksheet shows:
Line 9 $75,821
Line 11 $71,171
Line 15 $51,771
Tax Smart Worksheet Line I $1,248
Line 29 $1,000
Line 31 $1,276
TT states I qualify for AOTC $2,248. I now think my taxes owed are too low to accommodate a full credit on this as well as the child tax credit. I didn’t do so well on my attempt to manage my income level to allow for qualification on credits yet maintain a tax level to receive the credits.
TT shows my refund to be my total estimated taxes paid-in for 2022 plus $2,276. It appears to be a total of my Premium Tax Credit of $1,276 and $1,000 AOTC refund.
I’m assuming due to some of the non-refundable rules, I do not see my credit claims to be full amounts.
Child Credit $500
AOTC $2500
Premium Tax Credit - $1,276 - $1,505 (depends household income)
Form 1095-A self-insurance
Q. Should my daughter file as a dependent and claim AOTC? This daughter has a twin that has been a dependent on her dad‘s taxes until last year when she filed as a “single” and claimed the AOTC credit. Her college finances mirror the daughter that is my dependent and her return was prepared by an accounting firm. My daughter will have taxable income after deductions of about $2,700.
Do you have a sense if the better global benefit is to allow my daughter to claim AOTC and get a full amount versus me no longer being HoH and only claiming the Premium Tax Credit?
