Hello @Hal_Al
I have a similar situation and want to clarify these specific details. I have not quite wrapped my head around the AOC calculations.
Our son is in his 4th year of college and will graduate this year, we have claimed the AOC in 1 year. In 2021 he worked at his college (he was not a student but was away) Jan-Aug 2021, came home in May, and went to school Aug-Dec 2021. He earned W-2 income $11K. His 1098-T shows $35,961 in Box 5 and $31,331 in Box 1. Give the above info, I claimed him as a dependent on our joint return. We have too much income for the AOC; I deleted the 1098-T info from our return and added the 1098-T info to his return in TTax; I can see the approx $4000 earned scholarship income on line 1 of the 1040. He checked the boxes "someone else can claim me on their return" and "they have claimed me". He is not getting the AOC.
Is there a way for him to get an AOC credit given the above info if we do our taxes differently (don't claim him?), and if so, which info would we/he need to enter/change on our tax returns?
He earned his W2 and earned scholarship income in CT (we live in GA). The TTax questions about earning income in another state takes his return thru a CT and GA tax return. Does he need to file a tax return in CT, and if no, how do I answer TTax so it does not generate a CT tax return?
Do I also need to pay attention to the adjustment from a prior year amount in Box 4 $23,386 of the 1098-T? I looked at our 2020 1098-T which showed Box 1 $32,357 and Box 5 $24,732; we did not qualify for the AOC last year based on our income (though I wonder if we could have with the loophole calculations, I can't seem to wrap my head around them yet) ; I checked out our school statements and can't figure out why this adjustment occurs and wondered if it will affect our 2020 taxes.
Thank you!
