The AOTC thing is rather complicated. I could not figure it out. I know for sure that I cannot take advantage of it due to the income limit. But my daughter asked me whether she can claim the AOTC. She doesn't have earned income. Her education expenses were about $1000 more than the 529 distribution. She heard that part of the AOTC is refundable. So, she is wondering if she can take the advantage of it. (I understand that this would mean I cannot claim her as dependent. But I guess it is ok.)
I tried changing her tax return to say no one would claim her as dependent and keep all the other information the same. It doesn't seem to make any difference. So, I am lost.😫
