Q. I have heard for the American Opportunity act, you have to file Form-8863 in order to claim it. Is this true?
A. Yes
Q. if so, I would have to manually search up for this form and fill it out? Afterwards would I then attach this income tax?
A. No
Q. When TurboTax (TT) automatically applies the AOTC after entering my 1098-T information, they have already filled out the form for me?
A. Yes. When you e-file, form 8863 and all other forms are included in the transmission. That's what you're paying TT to do.
We haven't talked about your age and dependent status, if any.
A full time, unmarried student, under age 24, even if you don't qualify as a dependent, is only eligible for the refundable portion of the American Opportunity Credit if he supports himself by working. You cannot be supporting yourself on parental support, 529 plans or student loans & grants. You usually must have actually paid tuition, not had it paid by scholarships & grants. It is usually best if the parent claims that credit.
You cannot claim a credit if you are, or can be, claimed as a dependent by someone else.
Reference: Line 7 instructions for form 8863. https://www.irs.gov/instructions/i8863
