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April 7, 2025
Question

Why is turbo tax not showing me the form 8863 for American Opportunity Tax credit even though my adjusted income is below $90,000?

  • April 7, 2025
  • 2 replies
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    2 replies

    April 7, 2025

    To ensure TurboTax shows Form 8863 for the American Opportunity Tax Credit (AOTC), follow these steps:

    • Dependent Status: Verify in the Personal Info section that you are not claimed as a dependent on someone else's tax return. This is crucial because dependents cannot claim the AOTC.
    • Education Section: Use the search magnifying glass and the jump link to navigate back to the 1098-T section. Ensure you have entered your Form 1098-T and answered all related questions correctly. This includes confirming your enrollment status, education level, and qualified expenses.
    • Software Version: The Free Edition of TurboTax does not support the AOTC. You need to upgrade to the Deluxe Edition to claim this credit.
    Hal_Al
    Employee
    April 7, 2025

    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 the (up to) $1000 refundable 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#en_US_2024_publink53002gd0e674

     

    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 support article https://turbotax.intuit.com/tax-tips/college-and-education/what-are-education-tax-credits/L7TuLrVqZ

    https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-credits-deductions/education-tax-credits-available/L691dvlGB_US_en_US shorter

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