Why am I being told that I do not qualify for the American Opportunity Credit? I was a full time student, no drug convictions, did not finish a degree prior to 2021

Forum|Forum|4 years ago
February 7, 2022
1 reply
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The Government website outlines everything needed to qualify and I match with all of these. I have no idea why I would be told that I do not qualify.

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FangxiaL

Generally, you can claim the American opportunity credit if all three of the following requirements are met.

You pay qualified education expenses of higher education.
You pay the education expenses for an eligible student.
The eligible student is either yourself, your spouse, or a dependent you claim on your tax return.

For more details, refer to chapter 2 on pages 9-22 of the IRS Publication 970

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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.

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

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