Exceed AGI requirements for AOTC

[aj2947]

We do not meet AGI requirements for AOTC for our daughter first year of college. Does it make more financial sense for her to claim AOTC credit on her taxes? We did claim her as dependent on our taxes in 2023 and were planning to do the same in 2024 (not sure what implications this has).  This is our first year dealing with college student on taxes. Our daughter does have a part time job but overall annual income is very low.

[Bsch4477]

If you don’t claim her you lose the $500 child tax credit but she can apply as much as $1500 toward her tax liability. But since that amount is non refundable she can’t use more than her tax liability. So if her tax liability is less than $500 you are better off claiming her. If you don’t claim her be certain on her return that she checks the box saying that someone else CAN claim her. 

[aj2947]

She owed no taxes in 2023, she had a minor refund, her income was similar in 2024. 

[Bsch4477]

There would be no advantage in not claiming her since the AOC wouldn’t help her. 

[aj2947]

Thank you