I am an independent tax payer who has student loan. Joined college in Fall 2021 (first year). My 2021 earnings are < $2,000. why don't I qualify for AOTC?

Q. Why don't I qualify for AOTC?

A. Your earned income is too low and you are (probably) under age 24.

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.   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.

Reference: Line 7 instructions for form 8863. https://www.irs.gov/instructions/i8863