After trying to enter the below information in Turbo Tax free edition, Turbo tax states that she is not eligible for the AOTC. I am confused as to why...
Seeing that the 1098-T shows the scholarships received in 2019 are about 3 times more than the qualified education expenses paid, even when you include those qualified expenses not included in box 1, I just don't see anyone with any out of pocket expenses for *qualified* education expenses.
Now if the student wants to claim the scholarship income on the student's tax return and pay taxes on that income (which will be paid at the parent's tax rate if higher), by not claiming any education expenses, then the parent can claim the qualified education expenses as out of pocket expenses and qualify for the full AOTC (both refundable and non-refundable portion).
Weather the student will actually pay taxes on it though, will depend on the total of the student's reportable income. The student will be taxed on the lesser amount of
- The amount that exceeds their standard deduction of $12,300 or
- The amount that exceeds their earned income, plus $350.
