If you as the parent(s) are high income, are not eligible to claim the AOTC and receive no other benefit from claiming the dependent:
-do not claim the student
-student files own return, indicates CAN be claimed, but WAS NOT claimed
-student may claim the AOTC and as a dependent will be eligible for $1,500 of the $2,500 credit (not the refundable $1,000 part) and may benefit from the AOTC credit if their return is such that they owe taxes. (if student has earned income and claims enough of the scholarship as taxable to claim the AOTC and benefit from the credit).
