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April 14, 2023
Question

I am a full time student with tuition expenses on 1098T and my parents are not claiming me on their taxes. How do fill out the form to qualify for the credit?

  • April 14, 2023
  • 1 reply
  • 0 views
I selected Yes that I can be claimed but No to I am not being claimed and that I am a full time student and do not provide more than 1/2 of my own support.  I am not qualifying for the American Opportunity Credit or the Lifetime Learning Credit.  What am I doing wrong?

1 reply

Hal_Al
Employee
April 14, 2023

Since you CAN be claimed as a dependent, you are not eligible for the refundable portion of the American Opportunity credit.  You may only claim a credit if you have an actual tax liability, to offset.

 

While technically there is a provision that allows a student-dependent to claim a federal tuition credit, from a practical matter it seldom works out.  A student, under age 24, is only eligible for the refundable portion of the American Opportunity Credit (AOTC) if he/she supports himself by working. She cannot be supporting herself on student loans & grants and 529 plans and parental support.  It is usually best if the parent claims that credit.  

If the student actually has a tax liability, there is a provision to allow him to claim a non-refundable tuition 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 he can be claimed as a dependent, on his return. This is worth up to $2500 (AOTC shifts to all non refundable)