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February 20, 2022
Question

How do I qualify for the American Opportunity Credit? I am a full time student, in a degree program, independent, earned ~$9,000, my parents can't claim me. Under age 24.

  • February 20, 2022
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1 reply

Hal_Al
Employee
February 20, 2022

You probably can't.  $9000 is unlikely to be more than half your support.

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.

 

If you think you qualify, the key question, in the TurboTax interview comes in the personal info section when you are asked if more than half you support comes from your earned income.

Then it's a matter of entering your education expenses.

In TurboTax (TT), enter at:

Federal Taxes Tab (Personal for H&B version)

Deductions & Credits

-Scroll down to:

--Education

  --Education Expenses

 

Your education expenses must exceed your scholarships by more than $4000 to get the full credit.

See https://www.irs.gov/Individuals/AOTC

https://www.irs.gov/newsroom/american-opportunity-tax-credit-questions-and-answers

 

You will have to pay for an upgrade from the free edition of TT.