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The wizard indicates not qualified for AOC but I know I do. How can I ignore this manually enter the credit $ on form 8863?

Forum|Forum|3 years ago
February 25, 2023
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I am not a dependent on someone else's return. IRS indicates "You can...receive 40% of the American opportunity tax credit's value — up to $1,000 — even if you earned no income last year or owe no tax."

TurboTax Deluxe Online

Best answer by Hal_Al

You cannot enter info directly on the forms, in the online versions of TurboTax.

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

https://www.irs.gov/Individuals/AOTC

https://www.irs.gov/newsroom/american-opportunity-tax-credit-questions-and-answers

https://www.irs.gov/credits-deductions/individuals/education-credits-questions-and-answers

https://ttlc.intuit.com/community/college-education/discussion/i-have-a-1098-t-form-that-i-received-from-my-school-and-i-entered-all-the-information-but-it-said-i/01/998249#M23054

Hal_AlAnswer

Employee

You cannot enter info directly on the forms, in the online versions of TurboTax.

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

https://www.irs.gov/Individuals/AOTC

https://www.irs.gov/newsroom/american-opportunity-tax-credit-questions-and-answers

https://www.irs.gov/credits-deductions/individuals/education-credits-questions-and-answers

https://ttlc.intuit.com/community/college-education/discussion/i-have-a-1098-t-form-that-i-received-from-my-school-and-i-entered-all-the-information-but-it-said-i/01/998249#M23054

B

bsorrent0721Author

Thank you for the explanation. When it is stated "if he supports himself by working", is that determined by my answer to the interview question which asks whether or not I paid more than half of my living expenses with earned income?

Hal_Al

Employee

Q. Is that determined by my answer to the interview question which asks whether or not I paid more than half of my living expenses with earned income?

A. Yes.

That question is only generated when TurboTax sees that you are a full time student, under 24.