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Employee
June 1, 2019
Solved

Am I eligible for any dependent or education credits or deductions?

  • June 1, 2019
  • 5 replies
  • 0 views
Hi there! I am actually asking this question for my mom, who is single and files as head of household. Our household includes myself, my mom, and my brother. I am 24 years old and a full-time, second year graduate student. My brother is 26 years old and a full-time, first year undergraduate student. I am fairly certain my mom can claim both my brother and I as dependents (via "qualifying relatives"), as we live with her full-time, she provides more than half our support, and neither my brother nor I made more than $4,050 in 2016.

My question, however, is whether my mom can claim any type of dependent or education credits or deductions when she files her return. She claimed the American Opportunity Credit for all four years of my undergraduate career, so I know that is no longer an option, however, I am wondering if she can still claim it for my brother, given his age, but considering this is his first year in college?

My other question, and truly this is really where we are most concerned, is if there are any credits or deductions my mom can claim that are refundable? For example, I know the Lifetime Learning Credit can be claimed for me still, however, it is not refundable, so not all that helpful for our situation!

I sincerely appreciate any answers--and thank you for reading such a long post!
Best answer by Hal_Al

40% of the American Opportunity Tax Credit (AOTC) is refundable. Your Mom is eligible if she claims your brother as a dependent and he is at least a half time undergrad, at an eligible institution.  His age is not a disqualifier for the AOTC*.  His age only makes him a qualifying relative rather than a qualifying child dependent. 

You have everything else correct. As her dependent, you do qualify her for the Lifetime Learning Credit (LLC). but it is non-refundable. 

*Since your brother is over age 23, he is eligible for the refundable portion of the AOTC whether he is claimed by your Mom or he claims himself on his own return. But from what you describe, he is you Mom's dependent and she should claim him.

5 replies

Employee
June 1, 2019
Does your brother have any scholarships or grants?
Hal_Al
Employee
June 1, 2019
Tuition paid by scholarships and grants is not eligible for the AOTC. However, tuition paid by loans is eligible.
If the student, over age 23,  has grants or loans, that will affect the support calculation in determining whether he qualifies as a dependent. Loans co-signed by the Mom count as support provided by the Mom.

If the student is Mom's dependent, she may claim the AOTC regardless of who paid the tuition; him, her or even you.
Employee
June 1, 2019
Right, and if the taxable part of the grant puts Brother's income over $4,050., Mom cannot claim him?
Hal_Al
Employee
June 1, 2019
Mom cannot claim him if his income is over $4,050, including the taxable part of any scholarships
Hal_Al
Hal_AlAnswer
Employee
June 1, 2019

40% of the American Opportunity Tax Credit (AOTC) is refundable. Your Mom is eligible if she claims your brother as a dependent and he is at least a half time undergrad, at an eligible institution.  His age is not a disqualifier for the AOTC*.  His age only makes him a qualifying relative rather than a qualifying child dependent. 

You have everything else correct. As her dependent, you do qualify her for the Lifetime Learning Credit (LLC). but it is non-refundable. 

*Since your brother is over age 23, he is eligible for the refundable portion of the AOTC whether he is claimed by your Mom or he claims himself on his own return. But from what you describe, he is you Mom's dependent and she should claim him.

June 9, 2021

My Son is 27 years old

Can I claim education credit 

Thank you

Hal_Al
Employee
June 9, 2021

Q.  Can I claim an education credit on my Son is 27 year old son?

A.  Yes.  His age is not a disqualifier. But, you must be claiming him as a dependent, to claim the credit.