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April 1, 2020
Question

American Opportunity Credit

  • April 1, 2020
  • 1 reply
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I am trying to figure out if I am eligible for the American Opportunity Credit. I am not being filed as a dependent by my either of my parents (they are divorced). I am not sure because they help me pay for college, but I also pay a portion (1/3 of all costs including tuition, housing, food, ect). Any guidance would be great! 

1 reply

Hal_Al
Employee
April 1, 2020

If you only pay a third of your college cost, you most likely don't qualify for the American Opportunity Credit (AOC).  That's not the reason, you don't qualify, but just an indicator.  It also indicates that you probably qualify as one of your parent's dependent. 

So, here come the questions:

Why isn't one of them claiming you and the AOC?

How old were  you on 12-31-19?
Are you a full time student? If not, half time or more?

Do you work? How much did you make working?

Do you live with one of your parents? If away at school, do you return to one of them during breaks?

 

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, 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 (or your parents) 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, follow the TT  interview, it will determine if you qualify.  But, a lot of people are just not eligible. See https://www.irs.gov/Individuals/AOTC