Q. So if my child is working, she can get the AOTC tax credit because she has a tax liability as long as I don't claim her on my taxes. Is this correct?
A. Not exactly. If she has a tax liability and you don't claim her on your taxes, she can claim a non refundable credit up to her tax liability (and the credit limits). Her working is not relevant, for the non refundable portion.
She cannot claim the refundable portion (regardless of her dependent status) if:
1. He/she was:
.....a. Under age 18 at the end of 2023, or
......b. Age 18 at the end of 2023 and his earned income (from working) was less than one-half of his support, or
......c. A full-time student over age 18 and under age 24 at the end of 2023 and his earned income was less than one-half of his support .
2. At least one of his parents was alive at the end of 2023.
3. He is not filing a joint return with his spouse for 2023.
