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2 replies

DawnC
Employee
April 7, 2022

There are several possible reasons why.   This link provides a list of requirements you need to satisfy to take one of the education credits.   If you have already entered your education expenses, open your return, search for letme (one word, no space), and select the Jump to letme link. This will take you to the Education Optimizer.   It will show you the amount of credit and/or the reason you do not qualify.   What does TurboTax say on that screen?   

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Hal_Al
Employee
April 7, 2022

 

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

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

 

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. 

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

You cannot claim a credit if you are, or can be, claimed as a dependent by someone else.