@maglib
Similar to my response above to Hal, unfortunately I can't "undo" anything from 2020 as it's already been submitted as such, both with my initial return (when I had incorrectly claimed the AOC for a 5th year) and my amended return (which in place of the AOC I instead was able to claim the Tuition and Fees Deduction per TT program). At this point I'm working with the IRS exams to try and support my original amended return based on TT output.
To address a couple of assumptions you made about the student:
- They did finish all 4 years and complete their degree in 2020, so answering "no" isn't accurate (unless I'm missing something?)
- They did check the box "Someone else can claim me as a dependent" on their tax return for 2020 and the itemized deduction looks to be the calculation you'd expected: Income + $350 (again this is 2020). FYI they did use TT Online Version
I do like the idea of them opening an IRA but we'll need to see what transpires if/when we calculate what their taxes would be if they were to submit their amended return with the additional income from the grant.
Thanks!
