Education

Hal_Al · ‎February 17, 2025

No and yes. Note that eligibility for the refundable AOC isn't solely tied to dependency. Eligibility for the non refundable portion is about whether you are claimed as a dependent, not whether you can be claimed.

You don't qualify for a refundable American opportunity credit (AOC) if 1 (a, b, or c), 2, and 3 below apply to you.

1.	You were:
	a.	Under age 18 at the end of 2024, or
	b.	Age 18 at the end of 2024 and your earned income (defined later) was less than one-half of your support (defined later), or
	c.	Over age 18 and under age 24 at the end of 2024 and a full-time student (defined later) and your earned income (defined later) was less than one-half of your support (defined later).
2.	At least one of your parents was alive at the end of 2024.
3.	You're not filing a joint return for 2024.

Technically there is a provision that allows a student-dependent to claim a federal tuition credit, from a practical matter it seldom works out. A full time student, under age 24, is only eligible for the refundable portion of the American Opportunity Credit (AOTC) if he/she supports himself by working. She cannot be supporting herself on student loans & grants and 529 plans and parental support. It is usually best if the parent claims that credit.

If the student actually has a tax liability, there is a provision to allow him to claim a non-refundable tuition credit. But then the parent must forgo claiming the student as a dependent, and the $500 other dependent credit. The student must still indicate that he can be claimed as a dependent, on his return. This is worth up to $2500 (AOTC shifts to all non refundable).