Question about AOTC and scholarships

[Sgiraldo2025]

I started college in Fall 2021 and was not claimed as a dependent. I had no wages but received financial aid and did not file taxes. 1098-T: Box 1: $59K, Box 5: $62K, Excess scholarship taxable: $3 (below the filing threshold)

I recently learned I could have claimed the refundable AOTC by reallocating $4K of my scholarship to room & board, increasing my taxable income to $7K. This wouldn’t change my federal/state tax owed but would allow me to get the $1K refundable credit. Can I do that if file my 2021 federal tax return now and without filing the state return (MA)? Is that allowed?

[NCperson · Accepted solution]

@Sgiraldo2025 you could do as you suggest as long as the tax return is filed no later than April 17, 2025.  After that date the IRS no longer accepts claims for refunds from the 2021 tax year.

HOWEVER!!

you are NOT eligible for the $1000 refundable credit if the three statements are ALL true.

1) as of 12/31/21, you were under the age of 24 and you provided less than 50% of your financial support AND

2) you are filing other than Married - Filing Joint AND

3) one of your parents is alive.