How do I know if I actually qualify for the AOTC? I was 23 at the end of last year, and Form 8663 Line 7's Caution conflicts with Turbotax saying I'm all good?

[entg1]

When reviewing my tax info, the box on form 8863 on line 7 isn't checked and box 8 is filled, even though I was 23 at the end of 2021.  Unless I'm misunderstanding, I shouldn't qualify for the AOTC

[ColeenD3 · Accepted solution]

You are allowed 4 years to claim the AOC. Your age is not considered. You might not have started college until age 30.

Who is an eligible student for AOTC?

To be eligible for AOTC, the student must:

• Be pursuing a degree or other recognized education credential
• Be enrolled at least half time for at least one academic period* beginning in the tax year
• Not have finished the first four years of higher education at the beginning of the tax year
• Not have claimed the AOTC or the former Hope credit for more than four tax years
• Not have a felony drug conviction at the end of the tax year

*Academic Period can be semesters, trimesters, quarters, or any other period of study such as a summer school session. The schools determine the academic periods. For schools that use clock or credit hours and do not have academic terms, the payment period may be treated as an academic period.

[entg1]

Oh ok, thank you!

I guess I'm just getting confused about this part in form 8863 here.  It's making me think that I'm not eligible but I guess I'm still good?

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Multiply line 1 by line 6. Caution: If you were under age 24 at the end of the year and meet the
conditions described in the instructions, you can’t take the refundable American opportunity credit;
skip line 8, enter the amount from line 7 on line 9, and check this box

[RaifH]

The Form 8863 instructions are referring to whether or not you are a dependent of your parents. It does not impact your eligibility for the AOTC, it only determines whether it will be you or your parents who claim it. 

As a 23-year old full-time college student, you may be eligible to be claimed by your parents if you do not provide more than half your own support. If they are claiming you, they would also claim your education credit.

If you are not a dependent on your parents' return, then you may claim the credit for yourself. If you are unsure if your parents are including you on their tax return, you probably want to check with them before completing your own.