Do we have to claim our 22 yo (at least half time) college student or can she claim herself to get tuition credits since we don’t qualify for the tuition credits?

[scaiken]

She lives with us and we provide tuition payments, lodging, food and health insurance so we provide 1/2 of her support.  She works and makes ~ 10,000 a year.  

[Hal_Al · Accepted solution]

No.  She cannot claim the tuition credit, for several reasons.

The tuition credit goes with the student's dependency.  There is a rule that says IF somebody else CAN claim him as a dependent, he is not allowed to claim himself. 

The fact that she makes $10,000 means she cannot be a Qualifying Relative dependent.  So, whether she can be a Qualifying Child dependent depends on whether she is a full time student.

But all of that is irrelevant.  A student, under age 24, is only eligible for the refundable portion of the American Opportunity Credit if he supports himself by working. He cannot be supporting himself on parental support, 529 plans or student loans & grants. He must have actually paid tuition, not had it paid by scholarships & grants.  It is usually best if the parent claims that credit.  

As someone else indicated, If the student actually has a tax liability she is allowed to claim a non-refundable credit, under a special rule, but then the parent must forgo claiming the student  and the student still can’t claim herself. At only $10K, this will not do your daughter any good, as she has no tax liability, with the new $12K standard deduction.

[Bsch4477]

Hal-Al. One correction. If a student can be but is not claimed as a dependent, that student can claim the non-refundable portion of the education credit.  In this case it is moot since the student is not a dependent on any case.

[SweetieJean]

She IS a dependent.  But do you have a cite for your premise?

[Bsch4477]

You do not have to claim her but she must check the box saying that someone can claim her. She will be able to claim non refundable education credit. 

[scaiken]

So you are saying we have a “choice” as to whether or not to claim her this year, correct?  
Also, is “at least half time” the same as “full time” as it pertains to whether or not she qualifies for us as a dependent if we chose to claim her?

[Bsch4477]

You cannot claim her as a dependent since she is over age 18 and not a full time student and she earns too much to qualify as a qualifying relative.  Therefore she is the only one who can claim the education credit.

[SweetieJean]

She IS a full time student.

[Hal_Al]

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