Should I overspend on school supplies for tax purposes?

Lilliana330,

Aside from the amount of grants and scholarships left over after my tuition and fees are paid for from both semesters this year, I’ve also worked and made a little over 1k.
I’m wanting to file a tax return so that I can claim the largest refund I can from both AOTC AND EITC.

For AOTC, I have to spend my income on school expenses.
For EITC, I have to have over $6,580 but below $8,240 in income.

I’m still not sure of what the maximum refund would be for me for AOTC.
The maximum for EITC would be $503, so long as I’ve made those amounts in 2015.
The only way I can do that is to count my grants and scholarships as taxable income.

http://www.irs.gov/publications/p596/ch04.html

Taxable scholarships/grants are earned income for the purposes of filing requirements and the standard deduction. They are NOT earned income for the purpose of the EIC. The kind of taxable scholarships/grants you have will not be reported on a W-2.

I think according to the EIC table you would get less than $100 for $1k income from work (earned income).

To get AOTC you need to include enough of Pell in taxable scholarship amount to give you expenses enough for claiming AOTC to get the $1 k refundable amount of AOTC. I don’t think you will have taxable income because you have about $10k in deductions if nobody can claim you as a dependent.

You will have to see how it will play out. You still have a few months left to work if you want to.

At the most I would think you might get $100 EIC, $1,000 AOTC and any federal tax withheld from your job income.

That’s more than your work income…