Thank you this makes a lot of sense IRS-wise. I am above the income limit and can't claim AOTC on my joint return. Yes I lose the $500 but it's more than made up by what my daughter would gain through the AOTC.
But why would TT give her the credit when I checked the box for not claiming my daughter? TT interview doesn't seem to be asking questions about or applying the three rule test.
