AOTC Question - Turbo Tax website...

https://turbotax.intuit.com/tax-tips/co ... /L0I7clLFg

Is the below correct? I thought the AOTC was attached to the dependency exemption? When did this change?


Dependency rules
If your income is too high to claim the AOTC or LLTC and your student has enough taxable income of their own such that they would owe federal income tax, you can elect to:

Forego claiming them as a dependent
Let the student claim the credit on their own tax return
In this case, the parent does not get to claim the student as a dependent and therefore will miss out on any child or dependent credit. However, the value of the education credit may make it preferable for the parent to forfeit their claim of the child.

If the student can be claimed as a dependent on someone else's tax return (i.e. the parent's tax return) then the student is not eligible to claim the refundable portion of the AOTC on their own tax return.

It's accurate. I think it's always been that way.

It's accurate.. Except forego should be forgo.

What Does Forego Mean?

Forego means to come before in time or place and it can function as a verb or an adjective.

What Does Forgo Mean?

Forgo is a verb that means to go without or refrain from something desirable.

https://prowritingaid.com/forgo-vs-forego

Thanks. The AOTC is so dang complicated.

I believe they're only eligible for the nonrefundable portion though. You would still need to indicate that they're eligible to be claimed by someone. The indication on the top of page 1 of the 1040 says "some can claim you as a dependent" not "is someone claiming you as dependent". This limits the credit I believe.

I believe they're only eligible for the nonrefundable portion though. You would still need to indicate that they're eligible to be claimed by someone. The indication on the top of page 1 of the 1040 says "some can claim you as a dependent" not "is someone claiming you as dependent". This limits the credit I believe.

Go it. I'll have to remember this trick. Not many college students pay enough tax to where it makes sense but it's something to keep in mind.