<p>I was awarded $5550 for Pell Grant. I am working as WorkStudy student with the limit amount of money is $3000. I claimed myself on the W4 form but they did not take any money out from my paychecks because the money I made was so little. When I file the tax return, am I eligible for American Opportunity Credit when my tuition was paid by Board Fee Waiver ? I just spent on books and supplies for about $400 this semester and let's say next semester it would be $400 more then at the end of the year it's about $1000 for school. Since I hold no reliability of paying tax, am I still eligible for American Opportunity Credit ?
Thanks.</p>
<p>Books are eligible expenses for the AOC. As you pay no taxes you would not be eligible for the non refundable portion of the AOC (60% of the AOC is not refundable). Whether you are eligible for the refundable part depends on your circumstances. If you are under 24 with a living parent, you must have enough earned income to provide >50% of your own support to be eligible for the refundable portion of the AOC.</p>
<p>If you are eligible then it is the expenses paid in the tax year, not the school year. So if you have $400 of eligible expenses, then only 40% of that would be eligible for the AOC. If you are not eligible, only you parents would be able to claim it.</p>
<p>I (the parent) paid the tuition/boarding bill from a 529 account(I am the owner, DS is the beneficiary). Can I claim AOC?</p>
<p>Thanks</p>
<p>No…not if all of the expenses you paid were used as a 529 deduction. You can’t use the 529 and Opp Credit for the same expenses.</p>