Student status complicates the AOTC so here's my status:
Earned income does not provide over 50% of my support BUT other income does so I am not claimed on my parents return. (Support is approx 25% earned income, 25% 529 distribution, 25% from personal savings and 25% K1 trust income). I am under 24 and file my own return.
I am a full time student. I did not take the full amount of room and board and tuition out of 529, leaving $2000 +/- of tuition to apply to AOTC. It is my understanding that I can claim AOTC but not if it's refundable.
So if taxable income is 42,200 and individual exemption is 12,200 leaving net taxable income of 30,000 for a total tax of $924 all of which would be eliminated with AOTC.
Is this correct?
