- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Education
You do not qualify for a tuition credit, because almost all expenses were covered by tax free scholarships. Technically you had $34 of net qualifying expenses (1477 + 800 - 2243 = 34), which should have gotten you a $14 credit, so you still musta entered something wrong.
What about your age? Are you under 24? What about your dependent status; why do you think you can not be a dependent?
You are only allowed to claim the very generous (up to $2500, $1000 refundable) American Opportunity Credit (AOC) a maximum of 4 times in your undergraduate career. You may not want to waste one of those times on a $14 credit.
There is actually a loop hole available to claim the credit, when you are on scholarship. It takes a work around in TT.
The student reports all his scholarship, up to the amount needed to claim the American opportunity credit, as income on his return. That way, the parents (or himself, if he is not a dependent) can claim the tuition credit on their return. They can do this because that much tuition was no longer paid by "tax free" scholarship. You cannot do this if the school’s billing statement specifically shows the scholarships being applied to tuition or if the conditions of the grant are that it be used to pay for qualified expenses.
Using an example: Student has $10,000 in box 5 of the 1098-T and $8000 in box 1. At first glance he/she has $2000 of taxable income and nobody can claim the American opportunity credit. But if she reports $6000 as income on her return, the parents can claim $4000 of qualified expenses on their return.