topic American Opportunity Credit in Get your taxes done using TurboTax

American Opportunity Credit

sdwicklund — Sat, 05 Apr 2025 20:10:45 GMT

Got the credit last year. According to form 8863 we should get it this year. I have double checked all the TurboTax answers to ensure they are correct. Yet it says we are not eligible. Basically our son is going to a university and can not be claimed as a dependent by anyone else. We are under $180,000 filing jointly and the expenses far exceed what is required.

Thanks in advance for any suggestions.

Re: American Opportunity Credit

MindyB — Sat, 05 Apr 2025 20:13:42 GMT

Can you clarify if the income you mentioned is taxable income or AGI? The limit for married filing jointly is $180k of MAGI.

The education credits are limited using AGI as a starting point, not taxable income. The education credits are based on modified adjusted income ("MAGI"), which starts with Line 11, AGI, and has several modifications. Here is the chart to figure MAGI for the American Opportunity Credit: Worksheet 2-1. MAGI for the American Opportunity Credit

Re: American Opportunity Credit

sdwicklund — Sat, 05 Apr 2025 20:32:57 GMT

Thanks for the quick reply. I realized my error - I bypassed a "unusual situations" page that marked my son as not being a dependent. Fixed that and the credit kicked in.