I am filling out my tax form and am told I can't claim an Education tax break because one of the following may be true:Here is why you may not qualify: Somebody else can claim you as a dependent on their return Scholarships, grants, and other tax free assistance exceed the education expenses There were no net qualified education expenses None of these are true. What can I do now?

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trent221

Question

American Opportunity Credit

Forum|Forum|2 years ago
February 23, 2024
1 reply
0 views

I am filling out my tax form and am told I can't claim an Education tax break because one of the following may be true:

Here is why you may not qualify:

		Somebody else can claim you as a dependent on their return
		Scholarships, grants, and other tax free assistance exceed the education expenses
		There were no net qualified education expenses

None of these are true. What can I do now?

Hal_Al

Employee

Delete the 1098-T and start over.

Go through the entire education interview until you reach a screen titled "Your Education Expenses Summary". Click delete next to the student's name. You'll then get the "Your Education Expenses Summary" screen again. Click the "Add a student" button and re-enter the info.

If you hit the same snag, explain, here, why you think you do qualify, providing numbers and whether you are the student or the parent.

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. 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.

Reference: Line 7 instructions for form 8863. https://www.irs.gov/instructions/i8863