Hal_Al
Level 15

Education

The error may have been  earlier in the TurboTax (TT) program when TT may have  indicated you might be eligible for $1000. 

 

There's a new urban myth among college students that says they can get a $1000 from the government just for filing a tax form. For most of them, they simply aren't eligible. 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. 

You cannot claim the (up to) $1000 refundable credit if you are, or can be, claimed as a dependent by someone else.

Reference: Line 7 instructions for form 8863.

https://www.irs.gov/instructions/i8863#en_US_2024_publink53002gd0e674

 

If you are eligible, TT by passes Schedule 3 and takes the amount from line 8 of form 8863 and puts it on line 9 of form 1040.