Qualification for education tax break. No income

Forum|Forum|4 years ago
February 22, 2022
2 replies
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I am trying to qualify for the education tax break but I do not have a w2. I am about to finish my taxes, but do not know how else I can get this tax break? I meet all other qualifications except the w2 income part.

What other things might I already have that makes me qualify?

TurboTax Free Edition Online

JohnW152

Generally, you need some earned income to qualify for the refundable part of the American Opportunity Credit. Without it, you can’t claim the credit.

You won’t be eligible for the refundable part of the credit if you were

Age 18 at the end of 2021 and your earned income was less than one-half of your support, or
Over age 18 and under age 24 at the end of 2021 and a full-time student and your earned income was less than one-half of your support.

See Earned income in the 2021 Instructions for Form 8863 for information.

Use1Author

How about other proof of income instead of w2? I am speaking hypothetically, like if there was a stock investment made and this generated income. I am wondering if other forms of income would be able to make me as the student qualify if I did have other income in this scenario.

Vanessa A

No, if you had investment income that you were able to support yourself with, that would not count as income for the education credits. See @Hal_Al explanation below.

Edited 2/24/2022 @ 7:59AM PST @Use1

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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 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.

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

If you are eligible, you have answered something wrong, in the interview. But, a lot of people are just not eligible. See https://www.irs.gov/Individuals/AOTC