Claiming AOTC as a student?

Paying for College
1

Quick question about taxes, since that wonderful time of year is coming up.

Can I claim the AOTC for myself?

From what I understand, I do qualify for it. But from everything I’ve read, parents usually claim it. If I’m paying for my own education with no assistance from parents, can I claim it then? Or is it based on being a dependent for tax purposes. I know I’m not independent for fin aid purposes, but can I be independent for tax purposes? And then claim AOTC?
Thanks in advance for the help! This has been a little confusing to try and figure out, and CC always seems to be super knowledgeable on these things.

2

You do know that the AOTC is part of the deductions list that is claimed and that “may” reduce your overall tax rate.

You don’t get it back in a lump cash sum.

3

What’s your 2016 taxable income?

What’s your 2016 earned income?

Have you read IRS Publication 970?

Is your parents’ income too high to claim the AOTC?

If your parents can claim the full credit, can’t they just give you the $2500?

4

https://www.irs.gov/pub/irs-pdf/p970.pdf

^read chapter 2, page 19 for some guidance

5

Also read page 20 for some info about refundable credit.

6

I’m aware of what is it generally, just not how it might apply to this situation.

@Madison85 They wouldn’t give it back to me. It would definitely be easier that way, but unfortunately that’s not an option.

Thank you for all the help! I’ll get to reading.

7

So from what I’m reading, I can’t claim it if I’m a dependent…

My parents both want to claim me as a dependent. What happens if I file as independent and they claim me?

8

What’s your 2016 taxable income?

What’s your 2016 earned income?

9

Well, that’s a tricky question. It will either be about $1k or about $30k. I haven’t quite figured that out yet.

Regardless… if I’m reading right, then I can get 40% of the tax credit back as a tax refund? Is that right? That doesn’t seem right, though…

10

Do you support yourself or do your parents support you?

11

Okay, my last post sounded a bit weird. But I’ll get that figured out.

Bottom line, both want to claim me as dependent, I pay for more than half of everything so I want to claim myself…

Ugh. Taxes are confusing. I’ll go back to reading.

12

@twoinanddone During high school, mostly half and half with my dad. But now, all me. He’s supposed to pay for one thing but that’s not currently happening.

13

How much did you pay yourself for your college costs…not grants, and scholarships…or loans. How much did YOU pay?

14

@thumper1 About $22k for everything this semester and next semester’s tuition, room, and board

15

If someone else lists you as a dependent on their taxes, then you can’t claim the AOTC on your return. But it sounds like neither of your parents may be able to claim you as a dependent, if you are paying more than half of your own expenses…

16

So if they try to claim me as dependent anyway, then… what happens?

17

Basically, when the same social is a dependent on two different returns, it should eventually trigger an audit.

It sounds like you are in the right to claim yourself as a dependent, but save every scrap of paper to prove it.

Also, AOTC can only be claimed on four tax returns for the same student, so make sure you know how many times your parents claimed it.

18

Well, my guess is that if a personal exemption is claimed for the same SSN on two different tax returns, that will raise a red flag and the IRS will want to know what’s going on. Whether or not they have the resources to pursue the matter is anyone’s guess. But if you feel that you can rightfully claim your own exemption and can’t convince your parent/s not to claim you as a dependent and take your exemption, I would file in the way that is both legally correct and gives me the best benefit, and let the chips fall where they may.

19

Thanks for all the advice!

I’m not sure if I have the paperwork or the willpower to prove that I paid all of my own expenses… and I’m not sure if it’s worth it.

But it’s something to keep in mind. Thank you guys!

20

It shouldn’t be that much paperwork.

You should have w2 forms for your earnings at the end of the year, and college bills and a lease to show the bulk of your living expenses, your bank statements show you’re not getting extra money from somewhere besides your paychecks.

Don’t feel like you have to save every grocery and gas station receipt.