How can I make sure I’m actually eligible for the aoc credit? I’m worried my return will be too much and I don’t want to be audited. Can I simple deny it?
How can I make sure I’m actually eligible for the aoc credit? I’m worried my return will be too much and I don’t want to be audited. Can I simple deny it?
Q. How can I make sure I’m actually eligible for the aoc credit?
A. Two ways: 1. Carefully follow the TurboTax (TT) interview. With the correct input, TT will accurately qualify you for the AOC*. 2. Have an understanding of the rules so that you know you qualify. See https://www.irs.gov/Individuals/AOTC
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.
* In particular, if you are a FT student, under 24, you will encounter a question in the personal info section (not the education section) that asks if you provided more than half your support with earned income.