Claiming American Opportunity Tax Credit

Forum|Forum|1 year ago
February 21, 2025
2 replies
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My daughter is a freshman in college and I claim her as a dependent. She recieved at 1098-T from her school. I tried to claim the AOTC on my taxes but Turbo Tax said I wasn't eligible. We used Turbo Tax for her taxes and it said she cannot claim it either? I dont understand why neither of us can claim that credit. Any ideas?

xmasbaby0

Employee

Is your income too high? Or are you filing married filing separately?

AMERICAN OPPORTUNITY TAX CREDIT

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-credits-deductions/eligible-take-american-opportunity-tax-credit/L8ZQFKvLe_US_en_US?uid=m6efibfz

https://www.irs.gov/help/ita/am-i-eligible-to-claim-an-education-credit

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Hal_Al

Employee

The usual reason, you can't claim it is that your income is too high ($90,000 single $180,000 Married).

The student can't claim it because congress wrote the law to benefit parents.

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 the (up to) $1000 refundable 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#en_US_2024_publink53002gd0e674

If the student actually has a tax liability, there is a provision to allow her to claim the non-refundable 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 she can be claimed as a dependent, on her return.