I am hoping you could help me better understand how this American Opportunity Credit "loophole" works. These are the figures listed on my daughters 1098-T - Box 1 lists $6,795 and Box. 5 lists $12,309. So at first glance she has a taxable income of $5,514 ( TT also lists that she must file her own return because of this) and we are not eligible for the American Opportunity Credit. I believe your suggestion is that she reports a certain amount as Income ( on her return), and then we would reduce the Box 5 ($12,309) amount by the number that she reports as income on our return. At some point we will then be eligible for the American Opportunity credit, by following this method. Is that correct?
