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 stu...
See more...
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
At $13,000 earned income, it's marginal whether you qualify for the refundable AOTC.
When TurboTax sees that you are a FT student, under 24, it will add an earned income support question to the interview. The earned income support question is part of the personal info interview, not the education interview.
Go thru the personal info section again and be sure you answered that question correctly (or you answered the preceding questions correctly to generate that question).
You use the term "financial aid". Loans and scholarships are handled differently. Assuming the $7000 is scholarship; When asked if any of the scholarship was used for room and board, answer yes. Then enter the amount you want to be taxable (apparently $6500, unless you have some book and computer expenses to enter), in the pop up box. R&B are not "qualified educational expenses". So, this is how you tell TT that it is taxable. Note the wording at that screen “or other expenses”. You didn’t have to literally use the scholarship for R&B. This will put it on line 8r of Schedule 1 (this line was added in 2022).
If you're under 25, you're also not eligible for the EIC, unless you have kids.