@Rembrandt - I am intrigued that this may be a bug.... as AOTC can get quite confusing
if you are a dependent of someone else (normally that would be your parents), one of the criteria for AOTC is being 'at least a half time student' and that can be found on Form 1098-T in Box 8. The person who you are a dependent of (normally your parents) would claim AOTC - not you. That is the way AOTC works if you are claimed by someone else.
But the criteria is different if YOU, the student, are claiming AOTC and you are under 24 years old and not claimed by someone else. The eligibility bar is much higher
you are NOT eligible for the 'refundable credit' portion of AOTC (which is up to $1000) if
1) one of these three apply
- a) you are under the age of 18
- b) age 18 at the end of the year and your earned income was less than 1/2 of your support
- c) a full time student over 18 and under 24 and your earned income was less than 1/2 of your support (a full time student is defined as being in college during any part of 5 calendar months in 2021)
AND
2) at least one parent is alive
AND
3) you are not filing Married - Filing Joint
if you meet all three criteria you are NOT eligible for the up to $1,000 refundable credit; however, you are still eligible for the up to $2500 non-refundable credit (but that requires earning more than the standard deduction to be eligible for the 1st dollar of tax credit of the $1500 - a different story if you want a fuller explanaton. )
So I am curious
1) how old were you on 12/31/21?
2) are you being claimed by anyone else? yes or no?
3) were you in college for any 5 calendar months (which is the definition of a full time student) in 2021?
4) Is Box 8 checked on Form 1098-T?
5) what is your filing status?
6) was your earned income less than 1/2 your support? (this is hard to say "no" to unless you had a large income to cover 1/2 your expenses, including college expenses without consideration of scholarship money)
7) is at least one of your parents alive?
There are plenty of cases where parents are high wage earners and not eligible for AOTC. But the IRS was too smart and came up with criteria to make sure their children who may file their own tax return were ineligible as well (at least inelgible for the refundable $1000).
So i don't see the bug. What I see may be a misunderstanding of what constitutes a 'full time' student. If you are one you have to answer yes, you can't intentionally answer 'no' just to get the refundable credit - that would be lying to the IRS to get money someone was not eligible for; some may use a stronger word: 'fraud'.
@Hal_Al- as the Community expert on these AOTC matters, can you please review this? I think it's a misunderstand of how AOTC works and not a TT bug. Your response is much valued and appreciated.
