<p>I am filing single. My school wrote me a check for $4,500 at the end of the year. I paid $800 in books throughout the year. Can I use the $800 spent on books for the American Opportunity credit if I include the entire $4,500 as taxable income on the 1040? I've looked everywhere and can't figure it out :(</p>
<p>Thanks for taking the time to check this post out!</p>
<p>If your school wrote you a check for $4500 at the end of the year, does that mean that all of your expenses, including room and board as well as tuition and fees, were covered by scholarships and grants … and there was still that much left over? Great situation, but if that is the case, I’m pretty sure you have to claim more than just the $4500 as income - you also have to claim the portion used to pay for room and board. Books are an allowable expense for the American Opportunity Tax Credit, so I’d imagine you can claim this expense toward the credit. </p>
<p>Here is a reference for the taxable scholarship income:
[Taxable</a> Income for Students](<a href=“http://www.irs.gov/individuals/students/article/0,,id=96674,00.html]Taxable”>http://www.irs.gov/individuals/students/article/0,,id=96674,00.html)</p>
<p>Also consider that if your parents claim you on their return, you can’t take the tuition credits on yours. But if you’re independent, then any scholarships or grants above tuition have to be reported as income. But yes, you could then take the books for the credit.</p>
<p>I lived at home, so there was no room and board. Just the 4500 from school. I’m single and will not be a dependent on any tax return</p>
<p>If you’re single, live and home, are under the age of 24 and a full time student, then most likely your parents claim you on their return. Since they provide more than half of your support. So any tuition credit goes on their return. </p>
<p>If, for some reason, they don’t claim you, then you claim yourself. Then you can get the credit. Either way, the scholarships in excess of tuition and fees gets taxed on your return. If that’s the only income you have, you probably don’t even need the credit since you will have no tax liability. You also cannot take the American Opportunity Credit even if you claim yourself, if you’re under 24 and do not provide more than half of your own support from EARNED income.</p>
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I thought it was just the $1000 refundable part of the AO you could not take in this situation.</p>
<p>Yes, swimcatsmom, you are correct. From Publication 970:</p>
<p>Forty percent of the American opportunity credit is refundable for most taxpayers. However, if you were under age 24 at the end of 2009 and the conditions listed below apply to you, you cannot claim any part of the American opportunity credit as a refundable credit on your tax return. Instead, your allowed credit (figured on Form 8863, Part V) will be used to reduce your tax as a nonrefundable credit only. </p>
<p>You do not qualify for a refund if items 1, 2, and 3 below apply to you. </p>
<p>You were:</p>
<p>Under age 18 at the end of 2009, or </p>
<p>Age 18 at the end of 2009 and your earned income (defined below) was less than one-half of your support (defined below), or </p>
<p>A full-time student over age 18 and under age 24 at the end of 2009 and your earned income (defined below) was less than one-half of your support (defined below). </p>
<p>At least one of your parents was alive at the end of 2009.</p>
<p>You are not filing a joint return for 2009.</p>
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True. But the OP only had $4500 of income so there will be no tax liability, so no credit. And he can’t get the refundable part.</p>
<p>Could you, please, give me an advice in the following situation?</p>
<p>A student has a full-ride scholarship. In addition, by working as an IT guy in dorms, a student get a credit (but not actual money and no W2) for room expenses ($6000).<br>
In this case, earned money for IT job is more than 1/2 of all support, since scholarship is not considered to be a support. </p>
<p>Is it possible to claim the refundable American Opportunity tax credit?</p>