Is there any type tax credits for students?

Forum|Forum|3 years ago
October 20, 2022
2 replies
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I read that students can get up to $2500

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xmasbaby0

Employee

If you can be claimed as a dependent on someone else's tax return (your parents?) then the person who can claim you as a dependent is the one who can get the education credits. If you CANNOT be claimed as someone else's dependent you may be able to get education credit.

https://ttlc.intuit.com/questions/1901172-what-are-education-tax-credits

https://ttlc.intuit.com/questions/1901487-what-is-the-tuition-and-fees-deduction

https://ttlc.intuit.com/questions/1901172-what-education-tax-credits-are-available

https://www.irs.gov/help/ita/am-i-eligible-to-claim-an-education-credit

https://ttlc.intuit.com/questions/3262983-who-is-eligible-to-take-the-american-opportunity-tax-credit

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Hal_Al

Employee

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 Tax Credit (AOTC) 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.

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

*The $2500 amount, you heard of, includes the non refundable portion. There are circumstances where you can claim that. Read on for details.

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)

https://ttlc.intuit.com/questions/3936383-tuition-gift-to-children

Bsch4477

Employee

Just a slight clarification to the excellent answers already given. If your parents decide not to claim you as a dependent, even if they can, you can claim the non-refundable portion of the education credit if otherwise eligible. But as you have been told, it is almost always better for the parent to claim the dependency and the credit.