Question

American Opportunity Tax Credit.

Forum|Forum|6 years ago
March 3, 2020
1 reply
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Hello - it 2 prior years, my daughter has been a dependent, and I've paid her tuition and claimed the American Opportunity Tax credit.

This year - she made enough during the year so that I could not claim her as a dependent. While doing her taxes - TT says that she is not eligible. She is still in the four year window, and I am not claiming her as a dependent. While her net tax is zero - I thought that 40% was still refundable. what am I missing?

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D

DavidD66

It's hard to say without being able to review her return. Click on the following link for the eligibility requirements: Who is eligible to take the American Opportunity Tax Credit?

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B

brownte999Author

Thank you for the reply - but how what are my options for exploring this further? From your link and my previous reading - I see nothing that would disqualify her for the credit. (paid tuition with 1098-t at a major four-year university - in year 3 of credit eligibility, made well below $10K, cannot and was not claimed as dependent on any other taxes, enrolled full-time, -- what are my options for paid (or not) assistance to review this?

JohnB5677

It does sound like she should qualify

Is she filling her own tax return?
Did she claim herself as a dependent? (no longer on your return)
Did she post the 1098-T to her tax return?
Did she list Qualified Expenses?
Did you double check the answers to the questions regarding how long she's been in school?

The American opportunity tax credit is a tax credit of up to $2,500 of the cost of tuition, fees and course materials paid during the taxable year. However, 40% of the credit (up to $1,000) is refundable. This means you can get it even if you owe no tax.

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