Were You Working on an Associate, Bachelor's, or Graduate Degree?

Forum|Forum|6 years ago
April 17, 2020
1 reply
0 views

I answered Yes to this question because I am a full-time student working on getting a bachelor's degree but it dropped my federal tax refund from $2K to $530? Why did that drop that much due to this question? I have friends who are full-time students earning a bachelor's and they got their full $2K tax refund.

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, 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.

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