Hal_Al
Level 15
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Education

 Q. Would I be able to receive any of the education tax credit when I file? 

A. No. The law was written this way to specifically prevent what you want to do (shift the AOTC to the student when the parents are not 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 (AOC or AOTC) 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.                                                      

Reference: Line 7 instructions for form 8863.

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

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

 

If the $2000 taxable grant is your only income, it is not enough to require you to file a tax return.  If you have enough other income, that you actually have a tax liability, then you may be eligible to claim an education credit to cover that liability, but it requires declaring more scholarship as taxable to free up tuition to claim the credit with. See separate reply. 

 

 

 

 

 

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