@The Burge01
Based on your statement, your daughter does qualify to be claimed by you as a dependent. She must answer on her tax return “yes, I can be claimed as a dependent by someone else.“ then, there is a follow up question, “will the person who could claim you actually claim you this year.” if it is your plan for your daughter to claim the AOTCsee in her own name, then she answers no to the follow up question, but she must answer yes to the first question.
Most of the time, the largest AOTC will be paid if the parent claims the child as a dependent, and reports the child‘s tuition on the parents tax return, and the parent claims the AOTC.
In some circumstances, where a parents income is too high to qualify for the AOTC, the child may be able to get a credit, even if they are eligible to be claimed as a dependent. However, in order to get anything, the child must owe income tax — this generally means that the child‘s income must be more than $13,000. The credit can only negate the tax the child owes, and the child may get a full refund of any federal tax withheld from their paychecks, but the child would not be eligible for any additional credit amount as long as they are under age 24.
If it is your plan for your child to claim the AOTC instead of you, you may not claim them as a dependent on your tax return.
