Q. Can student take AOTC if claimed as dependent by parent?
A. No. Being a dependent disqualifies him.
Q. Can student take AOTC if the parent foregoes claiming him as a dependent?
A. Simple answer: no. Or, no in your case.
A student, not claimed as a dependent, can claim the non refundable portion of the AOTC. But, your student does not have enough income to have a tax liability to offset with the credit. He cannot claim the refundable portion ($1000).
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. It is usually best if the parent claims that credit.
