In the situation you described, you only have the option not to claim the American Opportunity Credit for 2022 if it is the third year of study and allow your son to take the 4th year of the credit in 2023 when he is no longer a dependent. If 2022 is the fourth year, then he will not qualify for 2023 for the AOTC. Consider if the Lifetime Learning Credit is applicable.
An eligible student for the AOTC is a student who:
- Was enrolled at least half-time in a program leading toward a degree, certificate or other recognized educational credential for at least one academic period during the tax year,
- Has not completed the first four years of post-secondary (education after high school) at the beginning of the tax year,
- Has not claimed (or someone else has not claimed) the AOTC for the student for more than four years, and
- Was not convicted of a federal or state felony drug offense at the end of the tax year.
See here and here for more information from the IRS on this topic.
[Edited 02/16/2023| 9:55am PST]
@chrisgh
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