American Opportunity Credit

Parents Forum
1

<p>If my daughter's grandparents contributed to her college tuition, can I still take this education credit? In other words, she is my dependent on my tax return. How does this impact the credit? I think I take the whole tax credit--not anyone else.</p>

2

<p>Why didn’t you have your parents “gift” the money to you first…then you go ahead and pay tuition? If you or the dependent paid the eligible expenses, you are OK. If you didn’t, then you may be out of luck. Consult your tax pro…</p>

3

<p>As long as you paid at least $4000 of tuition - you can take the credit.</p>

4

<p>“As long as you paid at least $4000 of tuition - you can take the credit.”…assuming 529 funds were not used to pay the $4000</p>

5

<p>Can a student claim the credit on his own return if his parents can’t claim it because he is no longer their dependent?</p>

6

<p>Yes, the credit is claimed by the person claiming the personal/dependency exemption. It’s also partially refundable which means the refund can potentially exceed the taxes withheld. Don’t forget about books and fees!</p>

<p>IRS.gov has a good Q and A. Just search American Opportunity Credit.</p>

7

<p>Thanks, mom3030. That’s how I read Pub.970, but since the parents paid the tuition and not the student, I just wasn’t sure.</p>

8

<p>It doesn’t just cover tuition - </p>

<p>Unlike the other education tax credits, the American opportunity tax credit includes expenses for course-related books, supplies and equipment that are not necessarily paid to the educational institution.</p>

9

<p>Well, in Maryland I can take the 529 money and get a STATE credit. This is different from the FEDERAL credit. This tuition WAS paid from a 529 but still qualifies in my opinion because this credit is a Federal credit.</p>

10

<p>The American Opportunity Tax Credit may not be claimed against:</p>

<p>Expenses paid using a 529 Plan or Coverdell Education Savings Account</p>

11

<p>Holly…take a look at this thread…especially the end. It looks like you may be in the clear with expenses paid by the grandparents.</p>

<p><a href=“http://talk.collegeconfidential.com/financial-aid-scholarships/1275655-american-opportunity-credit-form-8863-a.html[/url]”>http://talk.collegeconfidential.com/financial-aid-scholarships/1275655-american-opportunity-credit-form-8863-a.html&lt;/a&gt;&lt;/p&gt;

12

<p>Thank you so much. I think I just found the answer! The instructions for this Form 8863 are far more informative than anything I have read so far. I do think I am in the clear.</p>