Carl
Level 15

Education

Also note that when she did a draft of her return and selected that she "could" be claimed by someone else but then answered no when asked if that "some else" was claiming her, the result was that she was not eligible for and AOTC after the 1098-T was entered.

She answered both questions correctly. The ineligibility for the AOTC is for other reasons. Most likely, it's because she doesn't have the "earned" income to claim it against. Or the total of all scholarships/grants covers or exceeds qualified education expenses already. Remember, because of how she correctly answered the questions, her first $12,300 of "earned" income is already excluded from tax.

Now there is a part about the refundable portion, and non-refundable portion of the AOTC that I don't fully comprehend. But I think @Hal_Al has more insight on that than I do.