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Refundable American Opportunity Tax Credit and TT 2023

Turbo Tax for 2023 indicates that my daughter is eligible for the AOC refundable portion tax credit.

She has supported herself with earned income and is not a dependent on my taxes. The issue appears to be that I am alive, and according to the IRS website, this makes her NOT eligible for the refundable portion.

So what is wrong with Turbo Tax? They never ask if I'm alive.

 

Anyone know is what I've written is true?

 

Thanks

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4 Replies
MayaD
Expert Alumni

Refundable American Opportunity Tax Credit and TT 2023

You mentioned that your daughter supported herself. 

Your daughter doesn't qualify for a refundable American opportunity credit if 1 (a, b, or c), 2, and 3 below apply to her. 

1. she was:

   a. Under age 18 at the end of 2023, or 

   b. Age 18 at the end of 2023 and her earned income (defined later) was less than one-half of your support), or 

   c. Over age 18 and under age 24 at the end of 2023 and a full-time student (defined later) and her earned income was less than one-half of her support.

2. At least one of her parents was alive at the end of 2023. 

3. She is not filing a joint return for 2023.

 

2023 Instructions for Form 8863

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Refundable American Opportunity Tax Credit and TT 2023

I understand that. She meets all of the criteria except the fact that I'm alive. So no refundable portion.

 

My main question is what is wrong with Turbo Tax? It thinks that she should get the refundable portion, how do I fix the program?

 

DaveF1006
Expert Alumni

Refundable American Opportunity Tax Credit and TT 2023

To look at this in detail, we would like to see a diagnostic copy of your return. The information in this file is a sanitized copy meaning there is no personal information, only numbers so that we can troubleshoot in depth, check for calculation issues, and to see how certain items are applied. Here is how to order. 

 

For Turbo Tax online, go to tax tools>tools>share my file with agent.  When this is selected, you will receive a token number.  Respond back in this thread and tell us what that token number is. 

 

If you use the desktop version, go to the black stripe at the top of the program>online>send tax file to agent. Once you receive the token number, reply back in this thread and let us know what that token number is.


 

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Hal_Al
Level 15

Refundable American Opportunity Tax Credit and TT 2023

Q.  The issue appears to be that I am alive, and according to the IRS website, this makes her NOT eligible for the refundable portion?

A. No, that's not so. It means the opposite; orphans don't have to support themselves, with earned income,  to get the refundable AOTC. The fact that she supports herself with earned income negates the need for her to be an orphan.  

 

If TT isn't giving her the refundable credit, you've answered something wrong in the interview, possibly the earned income support question, itself.  Also, be sure to say no to the question CAN she be claimed as a dependent. 

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