<p>Generally a student under 24 who isn’t claimed as a dependent by someone else can’t get the refundable part of the AOC. They should be able to get the part of the AOC that reduces tax owed. See page 17 of the Pub 970 link.</p>
<p>Yes, the expenses for the AOC have to be qualified education expenses(QEE, tuition, fees and required books and supplies). If QEE is covered by scholarships/grants you have to ‘artificially’ create QEE by shifting the scholarships/grants to room and board and have your daughter report the additional amount as taxable. There should be a way to tell TurboTax you are doing this. Read and understand each question TurboTax is asking using any extra help it provides.</p>
<p>If your daughter is claiming her own exemption, then you can’t claim the AOC.</p>
<p>Per the question in the other thread, use the bursar’s report and records of payment, not the 1098T. The expenses have to have been paid in 2012.</p>