@Hal_Al - I appreciate you are quite the expert on this educational topic, but I will be a little "anal" and "nit picky" never-the-less. Apologies in advance.
- "don't qualify as a dependent" - the student could qualify as a dependent, but the taxpayer (normally the parents) chooses not to claim the student. so shouldn't the paragraph instead state "not claimed by anyone else"?
- "parental support" - that isn't the criteria unless the reason for no parental support is that they both are deceased!!. (my parents may choose not to support me but are alive!!!). The requirement is that if at least one parent is alive that is a criteria that can eliminate eligibility. I could be under 24, 100% supported by my aunt and uncle (who don't claim me), my parents are deceased and I am single and I would be eligible for the refundable credit. - see my point?
There are 3 criteria I mention above, which creates 8 permutations. Seven of the permutations maintains the student's eligibility for refundable AOTC (assuming no one claims them). It's that 8th permutation ( a) under 24 and <50% of support AND b) at least one parent is alive AND c) not filing MFJ) that eliminates refundable eligibility.
I always believed that Congress and the IRS created this requirement so that parents who make over $180,000 and therefore were not eligible for AOTC did not try to circumvent the rule by not claiming their college student so that the college student could claim the refundable credit. However, I suspect at least 95% of college students are a) under 24 and provide less than 50% of their own support AND at least one parent is alive AND are not married. So the IRS figured out a way to keep most all from circumventing the $180,000 income cap on eligibility for the credit.
I've learned a lot from your posts as this whole educational area is quite confusing, but can really be explained quite simply.
thanks again,
