This seems incorrect. 26 CFR 1.25A-1(f)(2) Example 2 seems to indicate that a parent can optionally choose to not claim a dependency exemption for their child. They are entitled to, but not required to. If they forego that deduction then the student can claim the educational credit and get the $1,000 refundable AOTC. The child may not be able to claim themselves on their return, so the child may not be claimed on any return. It will be interesting to see what happens in 2018 and later with the elimination of the personal exemptions.
