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April 7, 2024
Question

Shows I qualify for the American Opportunity Credit as a student. Then click "Max Ed Tax Break" and it says not eligible. All reasons should be satisfied. Any ideas?

  • April 7, 2024
  • 1 reply
  • 0 views
- No one claiming me as dependent
- Have taxable income
- Scholarships, etc. are under expenses
- Qualified expenses

1 reply

Hal_Al
Employee
April 8, 2024

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. 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 this TT FAQ https://ttlc.intuit.com/questions/3383321-why-didn-t-i-get-a-credit-or-deduction-for-education-expen...

and

 https://www.irs.gov/Individuals/AOTC