I think we were posting at the same time…she files her own taxes because she always gets a refund. If her Dad claims the AOTC, will that affect her in the long run? Can she be held responsible for the tax ramifications of ignorance or will he be held responsible because he is claiming her?
I only ask because if he refuses to discuss these issues with me because he insists on claiming her as a dependent, I want to make sure we don’t cross any lines…
From what you’ve described, he’ll only get the AOTC if she claims some of the grant as taxable. If she doesn’t there won’t be any QEE left to claim the credit. If she does have to pay taxes on some of the grant, and it is over $2000, she has to list the SSN of the parent to pay at parent’s rate.
Thank you, still confused but I’ll look over the thread tomorrow and try to figure it out.
I have to ask: since you (both) were previously splitting the refund when you (OP) were claiming her, does that mean you were both supporting her? That actually sounds like the most sensible approach – calculate how much of a difference it makes each way (Mom claims her, Dad claims her, she files her own) - and then split the “basic” amount as before, and apply the “excess” entirely to her expenses.
I know its a bother to calculate it out 3 different times, but if you are both still supporting her, it makes sense.