American Opportunity Credit

[Bucky]

Is it true that if you qualify as a dependent but your parents chose not to claim you you can claim the non refundable portion of the credit but not the refundable portion. It does state that in the tax box but I can't verify it anywhere else and my software allows the refundable portion. Tend to side with the tax book over software. Any imput would be appreciated.
Bucky

[BP.]

Is it true that if you qualify as a dependent but your parents chose not to claim you you can claim the non refundable portion of the credit but not the refundable portion. It does state that in the tax box but I can't verify it anywhere else

http://www.irs.gov/pub/irs-pdf/i8863.pdf

p. 5 of the 8863 instructions- lower left column

[KBTS]

From Pub 970

Refundable Part of Credit

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.

You do not qualify for a refund if items 1, 2, and 3 below apply to you.

1. You were:

1. Under age 18 at the end of 2009, or
2. Age 18 at the end of 2009 and your earned income (defined below) was less than one-half of your support (defined below), or
3. 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).

2.At least one of your parents was alive at the end of 2009.

3.You are not filing a joint return for 2009.

[AJsTax]

CHECK your selections

Is it true that if you qualify as a dependent but your parents chose not to claim you you can claim the non refundable portion of the credit but not the refundable portion. It does state that in the tax box but I can't verify it anywhere else and my software allows the refundable portion. Tend to side with the tax book over software. Any imput would be appreciated.
Bucky

in your software. Ours has 3 choices, is a dependent, not applicable and Could Be a dependent. The last one shuts off the redundable portion. also could be a switch on the 8863 input screen, depending upon the software.

[Bucky]

Thanks I looked in that pub and missed it completly. I guess my speeding reading skills need an update. I use Drake and they have a box to check for dependent but not being claimed but it still gives the refundable credit.