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April 15, 2020
Question

Can I receive the American Oppurtunity Credit if my parents paid for my school but cannot claim me as a dependent and i received a 1098-T from my university?

  • April 15, 2020
  • 2 replies
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2 replies

April 15, 2020

Yes, the money your parents pay is considered a gift which you then use towards your education expenses. 

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Hal_Al
Employee
April 15, 2020

Maybe,  but probably not. We need to know more*.

 

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 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.  See  full rules at https://www.irs.gov/Individuals/AOTC

 

* Why can't your parents claim you as a dependent? 

How old are you?

How much is your income and what is the source?

Who do you live with? When you are away at school, even living off campus, you are still considered as residing with your parents

krusesacAuthor
April 15, 2020

I paid for more than half of my own support. I started college in fall of 2015 and graduated in May of 2019, in June I moved out of my house and started a full time job.... my salary was around 40k

krusesacAuthor
April 15, 2020

I am 23 btw