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mromine1234
New Member

My friend got the American opportunity tax credit and is under 24, did she do something wrong?

She did work some of 2015, but not now. She is also and independent.

1 Reply
SweetieJean
Level 15

My friend got the American opportunity tax credit and is under 24, did she do something wrong?

per IRS Pub 970 - 

"Refundable Part of Credit - Forty percent of the American opportunity credit is refundable for most taxpayers. However, if you were under age 24 at the end of 2015 and the conditions listed below apply to you, you cannot claim any part of the American opportunity credit as a refundable credit on your tax return. Instead, your allowed credit (figured on Form 8863, Part II) will be used to reduce your tax as a nonrefundable credit only. 

You do not qualify for a refund if items 1 (a, b, or c), 2, and 3 below apply to you. 

1.You were:
a. Under age 18 at the end of 2015, or
b. Age 18 at the end of 2015 and your earned income (defined below) was less than one-half of your support (defined below), or
c. Over age 18 and under age 24 at the end of 2015 and a full-time student (defined below) and your earned income (defined below) was less than one-half of your support (defined below). 

2. At least one of your parents was alive at the end of 2015.

3. You are filing a return as single, head of household, qualifying widow(er), or married filing separately for 2015."

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