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February 28, 2021
Question

How do I accept the American opportunity tax credit

  • February 28, 2021
  • 1 reply
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It says I qualify for it but how do I accept it so I get the money back on my refund

1 reply

Hal_Al
Employee
February 28, 2021

In TurboTax, you don't ''accept" it. If you qualify, it is automatically applied. After you enter your 1098-T,  follow the interview to completion.  See form 8863, for calculation details.

 

If you are eligible, and TT is not giving it to you, you have answered  something wrong, in the interview. But, a lot of people are just not eligible. 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, 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. 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.