Discussion:Tuition tax credit for the (dependent) student
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Discussion Forum Index --> Advanced Tax Questions --> Tuition tax credit for the (dependent) student
Discussion Forum Index --> Tax Questions --> Tuition tax credit for the (dependent) student
| 13 February 2011 | |
| Can a child with no filing requirement claim themselves as a dependent in order to obtain the refundable portion of the tuition tax credit. The parents' income is too high to take any tuition credits or deductions. Generally, a dependent cannot claim themselves if they could be claimed by another taxpayer. From some research I have done thus far, it appears the child may be able to file a return and claim the refundable portion (up tp $1,0000 max) of the tuition tax credit. Can this really be done? | |
Rgtaxservice (talk|edits) said: | 13 February 2011 |
| Child won't be able to get the refundable portion of the AOC because the child did not provide over 1/2 over his/her own support (based on the fact that the child doesn't even meet the filing requirement). | |
| 13 February 2011 | |
| What I'm reading says this "if you are eligible to claim the exemption for your child but do not do so, your child can claim a credit for qualifying expenses he/she pays as well as qualifying expenses that you paid". No mention of the exemption is mentioned which is why I'm trying to determine if the child can claim themselves...if this is an exception to the general dependency rules. | |
Rgtaxservice (talk|edits) said: | 13 February 2011 |
| Per the 8863 instructions:
You do not qualify for a refund if 1(a, b, or c), 2, and 3 below apply to you. You were: a. Under age 18 at the end of 2010, or b. Age 18 at the end of 2010 and your earned income (defined below) was less than one-half of your support (defined later), or c. A full-time student over age 18 and under age 24 at the end of 2010 and your earned income (defined below) was less than one-half of your support (defined later). 2. At least one of your parents was alive at the end of 2010. 3. You are not filing a joint return for 2010. | |
Rgtaxservice (talk|edits) said: | 13 February 2011 |
| The nonrefundable portion of the credit won't help the child because his income is below the filing requirements...no tax liability, and because the child did not provide over half of support there is no refundable portion allowed. | |
| 13 February 2011 | |
| CK, see CCA 200236001. This memorandum from the office of the chief cousel allowed what you want to do. The memo itself deals with the Hope Credit, but the rules are basically the same for AOP credit. I did this and it was questioned by the IRS. I sent them a copy of the CCA and they allowed the dependent child to claim the credit, including the refundable portion of the AOP credit. | |
| 14 February 2011 | |
| "I sent them a copy of the CCA and they allowed the dependent child to claim the credit, including the refundable portion of the AOP credit. "
Think taxpayer got lucky. | |
| 14 February 2011 | |
| If a student's parents cannot qualify for the AOC, and due to AMT gets little advantage of the dependent exemptions..........can that student claim himself and get the non refundable portion of the AOC? I don't think proseries limits the refundable part. | |
Nightsnorkeler (talk|edits) said: | 15 February 2011 |
| No and yes. If the parents qualify to claim the exemption but do not, the child cannot claim themself. The child can claim the AOC, however can only use the non-refundable portion to offset tax. | |
| 15 February 2011 | |
| If a parent does not take an exemption for a child even though he is entitled to the exemption...........the child cannot take it. However, Pub 970 on page 15 states....the dependent can claim the American Opportunity Credit. The 8863 instructions tell you that he can't get the refundable portion. I don't have this situation, but am curious. I put in such a student. Did not allow the dependency exemption. Answered the question about someone else being eligible to claim this TP yes. Did that person claim them? No.
Proseries Allowed the refundable portion of the AOC. Did I miss an entry? | |
Nightsnorkeler (talk|edits) said: | 15 February 2011 |
| See if there's a box to check for "student under age 23" or something like that. Or check Proseries support. You are getting bad results. | |
| 15 February 2011 | |
| At the bottom of the F8863 is Additional questions about TP under age 24. Specifically asking about support. That fixed it. Thank you. | |
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