TurboTax allows my child to take the American Opportunity tax credit when she entered that I will claim her as a dependent so may she take the tax credit or is it wrong?

[turbodjk01]

I believe that she is not eligible to take the American Opportunity tax credit on her return because I am claiming her on my tax return, but Turbo Tax is allowing it.  I confirmed she entered that I will claim her.  Note that she is in her second year of college and we have never claimed this before and that our family income exceeds the limits for the tax credit.

[MiriamF · Accepted solution]

If your daughter is your dependent, then only you may claim the credit.

If your daughter is otherwise eligible to claim the credit but isn't paying for half of her living expenses, and you don't claim the credit, no one gets the credit.

If TurboTax is allowing your daughter to claim it, then she may be making an error in entry somewhere in the return.

The IRS has a tool to determine if you are eligible for an education credit that you may find helpful.