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March 22, 2021
Question

1098T tax return

  • March 22, 2021
  • 1 reply
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I'm about to enter the 1098T form on this year's tax return but I'm not sure if I can claim a credit by entering 1098T or just get a tax deductible. I entered 1098T then I got this message

    1 reply

    Hal_Al
    Employee
    March 22, 2021

    There's a new urban myth among college students that says they can get a $1000 from the government just for filing a tax form. For most of them, they simply aren't eligible. A full time unmarried student, under age 24, even if you don't qualify as a dependent, is only eligible for the refundable portion of the American Opportunity Credit if he supports himself by working. You cannot be supporting yourself on parental support, 529 plans or student loans & grants. You usually must have actually paid tuition, not had it paid by scholarships & grants.  It is usually best if the parent claims that credit. 

    You cannot claim a credit if you are, or can be, claimed as a dependent by someone else.

     

     

    If you are eligible, you have answered  something wrong, in the interview. But, a lot of people are just not eligible. See https://www.irs.gov/Individuals/AOTC

    https://www.irs.gov/newsroom/american-opportunity-tax-credit-questions-and-answers