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February 13, 2020
Question

Hello, I paid $10,300.00 for the tuition for my university which was a loan from the department of education. Will it help me receive more tax return?

  • February 13, 2020
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1 reply

Hal_Al
Employee
February 13, 2020

Yes. Tuition paid by loans is considered as paid by you and qualifies for a tuition credit.  The undergrad credit (AOTC) is worth up to $2500, up$1000 of which is refundable.

 

But, an unmarriedstudent, 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 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.