8863 Refundable credit

Forum|Forum|1 year ago
February 26, 2025
2 replies
0 views

I'm doing my taxes through TT and when I get to the 8863 form there seems to be a problem. I can't get the refundable credit for the AOTC even though I am under 24, live with my parents but fully support myself (earned income was more than one-half of my support, we split everything 50-50, and they don't claim me as a dependent), and I'm a full-time student (the box is not checked in line 7). Do I not qualify for it or am I missing to answer something in TT?

Best answer by Hal_Al

Q. Do I not qualify for it or am I missing to answer something in TT?

A. Based on your description, you do qualify (your earned income is more that half your support). You've answered something wrong in the interview.

When TurboTax sees that you are a FT student, under 24, it will add the earned income support question to the interview. The earned income support question is part of the personal info interview, not the education interview.

Go thru the personal info section again and be sure you answered that question correctly (or you answered the preceding questions correctly to generate that question).

That said, it's not that clear that that you do provide more than half your own support.

The support value of the home, provided by the parent, is the fair market rental value of the home plus utilities & other expenses divided by the number of occupants.

The IRS has a worksheet that can be used to help with the support calculation. See: http://apps.irs.gov/app/vita/content/globalmedia/teacher/worksheet_for_determining_support_4012.pdf

Hal_AlAnswer

Employee

Q. Do I not qualify for it or am I missing to answer something in TT?

A. Based on your description, you do qualify (your earned income is more that half your support). You've answered something wrong in the interview.

Go thru the personal info section again and be sure you answered that question correctly (or you answered the preceding questions correctly to generate that question).

That said, it's not that clear that that you do provide more than half your own support.

The support value of the home, provided by the parent, is the fair market rental value of the home plus utilities & other expenses divided by the number of occupants.

The IRS has a worksheet that can be used to help with the support calculation. See: http://apps.irs.gov/app/vita/content/globalmedia/teacher/worksheet_for_determining_support_4012.pdf

crisjtc09Author

I've gone through my info page again and I have the full-time student and support myself selection both on yes, with no dependents or anyone that can declare me as a dependant selected but that doesn't fix it. I went through my 1098-T options to see if I missed selecting something that would change it but everything seems where it's supposed to be, nothing really seems to check the box in line 7 of form 8863. I've seen in other posts that one way to do it is to select "Another taxpayer can claim me as a dependent on their tax return." and say no to the "Will this person claim you on their 2024 tax return?" that comes after but won't that affect the rest of my return as well? When I tried to do so it asked me to add the recipient's SSN to my 1095-A form as if I wasn't the principal on it when I am and there are no other individuals on my policy statement for last year. Would it be okay to put mine on it or is it doing it that way wrong altogether?

Hal_Al

Employee

" support myself selection on yes"

The support yourself question is not good enough. You have to get the support yourself with earned income question

I just tried it (Desktop Deluxe). It seems simple:

-Don't check the box that says somebody can claim you

-Say yes to working on a degree

-Check full time student

-Check yes to provide more than half your support with earned income

In the educational expenses section, at the "Here's your education summary" screen, click edit at "Education Information" and go thru the qualifying interview again (or delete the student and do the whole section again)

"Another taxpayer can claim me as a dependent on their tax return." and say no to the "Will this person claim you on their 2024 tax return?"

That will allow you to claim the nonrefundable portion of the AOTC. If you have a $2500 tax liability, that will work.

"When I tried to do so it asked me to add the recipient's SSN to my 1095-A form as if I wasn't the principal on it when I am and there are no other individuals on my policy statement for last year. Would it be okay to put mine on it or is it doing it that way wrong altogether?"

Huh? I'm not familiar with form 1095-A, so I don't try to answer questions in that area. That said, I've never heard of it affecting the AOTC.

crisjtc09Author

Even when I try to do it like I mentioned before it doesn't let me enter my SSN because it's expecting my 1095-A form to be added to my parents' taxes or that's what the description on top of the "issue" says.