@avjunior read the word "CAN" in the question.
the parent always has the option to claim or not claim their children.
But the question asked of the dependent is CAN someone else claim you; not whether the parent actually claimed you.
it's is quite clear...... CAN you be claimed and WERE you claimed are not even close to the same thing!
<<If a parent doesn't meet the AGI requirements for claiming the AOTC then if the student claims it it can be a big savings for the student while the parent only loses $500. However if the student checks the box that they can be claimed on the parent's return they cannot claim the AOTC.>>
bold: that is not true!!!
that is a different can of worms. if your parent claimed you, you can not claim AOTC! so it is necessary to know what your parents actually did!
If they did not claim you, you can claim AOTC, but it is rather hard for most students. (and that doesn't change how you answer the CAN question, which is totally separate from AOTC)
There are two parts of AOTC: refundable (worth up to $1000) and non-refundable (worth up to $1500).
you are not eligible for the refundable credit if ALL THREE of the following are true:
1) you are under 24 years old and provide less than 50% of your support
2) one of your parents are alive
3) your filing status is other than MFJ
you are eligible for the non-refundable portion (and that can be the whole $2500 if you are not eligible for the refundable portion), but it requires an income of at least $14,600 in 2024 to be eligible for the first dollar of the credit. The credit will reduce your tax liability (line 22) of form 1040 to as low as zero. But if your income is less than $14,600, it's not worth anything to do.
does that help?
