Can my child claim education credit

Forum|Forum|3 years ago
April 7, 2023
2 replies
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Married, filing jointly but earned too much to claim our child's education credit. Can my child claim the credit if we don't claim them as a dependent? Full time student with seasonal job less than $5,000

Thank you

Other

Bsch4477

Employee

Yes, if you don’t claim the student as a dependent. The student checks the box saying they can be claimed but are not being claimed. Student can then claim the non refundable payment of American Opportunity Credit.

damitaxesAuthor

Thank you

Bsch4477

Employee

@Hal_Al Makes an excellent point. While the student theoretically can get education credit, in practice the credit is useless unless there is a tax liability to apply it against.

Hal_Al

Employee

Q. Can my child claim education credit/

A. Simple answer: No.

While technically there is a provision that allows your student-dependent to claim a federal tuition credit, from a practical matter it seldom works out. A student, under age 24, is only eligible for the refundable portion of the American Opportunity Credit (AOTC) if he/she supports himself by working. She cannot be supporting herself on student loans & grants and 529 plans and parental support.

If the student actually has a tax liability, there is a provision to allow him to claim a non-refundable tuition credit. But then the parent must forgo claiming the student as a dependent, and the $500 other dependent credit. The student must still indicate that he can be claimed as a dependent, on his return. A student, with only $5000 of W-2 income, will not have a tax liability.