We have received the American Opportunity tax credit for my son the last 3 years.

[5schros]

My son graduated college in May and started a new job in July. He is now independent so I understand I can't claim his as a dependent in 2016. My question is even though I can't claim him, can I still claim the American Opportunity Tax Credit on my tax return since I paid for his college this past year? If I can't claim the credit, can my son claim it on his tax return?

[Texas Roger · Accepted solution]

You may still be able to claim him as a dependent if he was under 24 at year end, lived with you more than half the year, was a full time student for at least 1 day of 5 different months, and didn't provide more than half his own support for the year. If you can claim him, you can still claim qualified expenses paid out of pocket or with loans for the AOC for a 4th year on your tax return. 

If you can't claim him as a dependent, he must claim the qualified expenses paid out of pocket or with loans on his own tax return for credit. 

Some schools bill for the spring semester the year before. So if his 1098-T shows that he was billed for the spring semester in 2015 and it was paid in 2015, then it had to be claimed on a 2015 ta return. 

Any scholarship or grant income that paid for non qualified education expenses such as room and board in 2016 must be claimied on his tax return whether you can claim him or not.

[5schros]

As to whether or not I can claim him as a dependent, he graduated in May and moved out of my house in July so technically he was with me more than half the year and he is under 24 years of age. The question is support. Since July he has earned roughly $50K in his job. Given that, would I still be able to claim that I provided more than half his support?

[Texas Roger]

See the answer to your other question for a worksheet to help you determine this. The key is whether HE provided more than half of his own support not whether you provided more than half his support. If he made $50,000 but put a lot of it in savings, then he wouldn't have provided more than half his own support.
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