Resident Alien for AOTC Refundable Part

Forum|Forum|5 years ago
March 17, 2021
1 reply
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I know I am eligible for AOTC, but just not sure whether I can claim the REFUNDABLE part.

I was under age 24 at the end of 2020 and a full-time student.

I just became a resident alien for the tax purpose for the year 2020, but the thing is I checked Publication 970 and all the online resources. It mentioned that if I can be claimed as a dependent, then I am not eligible for the refundable tax credit, but still eligible for a nonrefundable tax deduction.

My parents are not US citizens and currently living in my home country, so no one in the US can claim me as a dependent. However, they pay for my tuition while I pay all my living expenses, which means my earned income is not one-half of my support.

Now, the question is whether the money my parents sent me from foreign countries counts toward my own earned income.

It is complicated. I have been digging a lot of information online and talked to tax specialists, and I still get divergent answers on my situation.

Thank you for anyone's inputs in advance.

Benefit Assist Online

DaveF1006

It depends. The ruling says that You cannot claim the American Opportunity Tax Credit “if you're claimed as a dependent on another person's tax return, such as your parent's tax return,” according to the IRS. This is interpreted to mean on your parents tax return only if they file a US tax return. You can file a return claiming your own dependency.

You may also claim the AOTC even if your parents do pay your tuition.

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