Q. Would it be more advantageous to not claim my child and let them claim their self on their return?
A. No. Essentially that is not allowed. A student that CAN be claimed as a dependent, is essentially not allowed the refundable portion of the American Opportunity Credit, whether he is actually claimed or not.
If the student actually has a tax liability (it sounds like your student does not have a tax liability), there is a provision to allow him to claim a non-refundable tuition credit. But then the parent must forgo claiming the student as a dependent, and the $500 other dependent credit. The student must still indicate that he can be claimed as a dependent, on his return.
