Hello, I am a single, dependent student, under the age for 24, on my 2nd year of college (eligible institute, received 1098-T), scholarships less than tuition, AND I have done the suggested "review your personal info" and "delete the Student and start over tricks" and gone over all the questions a handful of time and it still says I am ineligible.
I reviewed other TT questions and still not finding a solution. I found the IRS Interactive Tax Assistant for education tax credit, completed the questionnaire and that even says I am eligible.
Please help!
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As a dependent under the age of 24, you would only be eligible for the nonrefundable portion of the AOTC. So, if you do not have a tax liability, you would not be able to claim the credit.
Your nonrefundable credits are credits that will reduce your tax liability to $0, but not below $0. They are different from refundable credits which will result in extra money being sent to you that you did not pay in.
"If you were under age 24 at the end of 2023 and the conditions listed below apply to you, you cannot claim any part of the American opportunity credit as a refundable credit on your tax return. Instead, you can claim your allowed credit, figured in Part II, only as a nonrefundable credit to reduce your tax.
You don't qualify for a refundable American opportunity credit if 1 (a, b, or c), 2, and 3 below apply to you.
1. You were:
a. Under age 18 at the end of 2023, or
b. Age 18 at the end of 2023 and your earned income (defined later) was less than one-half of your support (defined later), or
c. Over age 18 and under age 24 at the end of 2023 and a full-time student (defined later) and your earned income (defined later) was less than one-half of your support (defined later).
2.At least one of your parents was alive at the end of 2023.
3.You're not filing a joint return for 2023." Instructions for form 8863
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