AOC

I have claimed my student for 3 years as a dependent. This year my income is above the treshold and wont be claiming her as a dependent. Can she claim the last year of the AOC on her return? She also has an income of $24k and has lived away for more then a year and pays for her living expenses and I just paid tuition.

328

Expert Alumni

Mar 24, 2021 11:40:56 AM

Yes, she should be able to claim the AOC if she is not a dependent on another filling and meets the requirements below.

To qualify, you must be enrolled for at least one academic period at least half-time each year. The credit covers:

Tuition payments (there is no distinction between covering tuition versus books/supplies as implied in these bullets)
The entire cost of purchasing school books and supplies for the first $2,000 you spend
Plus 25% of the next $2,000 you spend on books and supplies, or $500

That's a maximum annual tax credit of $2,500.

However, after a certain income level, the credit starts phasing out. In 2020, the credit begins decreasing for:

Single taxpayers with a modified adjusted gross income (MAGI) above $80,000
Or married taxpayers filing joint returns with a MAGI above $160,000

The credit is not available to those whose income exceeds $90,000 for single filing or $180,000 for married filing jointly.

-follow these link(s) for additional information-

Take Advantage of Two Education Tax Credits - TurboTax Tax ...

AOTC | Internal Revenue Service

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AOC