Is my math correct?

[AZ-Tax]

TP claims dependent:

- $1854 Fed
+ $2484 AZ
= + $626


TP does not claim dependent
- $2880 Fed
+$2386 AZ
= - $494

Dependent claims himself
+ $1392 in Ed credits

Nets out +$272 in less income tax overrall if kid files his own tax return and claims himself, correct?

[MilTaxEA]

The kid can't claim himself on his return if his parents can claim him. However, for purposes of the education credit, if the parents choose not to claim him as a dependent, the kid can claim the education credit on his return (nonrefundable AOC). However, he still can't claim himself as an exemption.

[AZ-Tax]

I need a brilliant math person

The kid can't claim himself on his return if his parents can claim him. However, for purposes of the education credit, if the parents choose not to claim him as a dependent, the kid can claim the education credit on his return (nonrefundable AOC). However, he still can't claim himself as an exemption.

I am only emphasising on my math. I was up nearly 15 hrs and thought my eyes are playing tricks on me. The situation is the parents AGI is to high for Ed credits or deductions. The kid has w-2 wages and can claim himself on his tax return and recieve both non and refundable AOC but obviously the parents cannot claim him if he goes this route. Once again, I am emphasising on my math.

Am I correct?

[Larmil]

I am only emphasising on my math. I was up nearly 15 hrs and thought my eyes are playing tricks on me. The situation is the parents AGI is to high for Ed credits or deductions. The kid has w-2 wages and can claim himself on his tax return and recieve both non and refundable AOC but obviously the parents cannot claim him if he goes this route. Once again, I am emphasising on my math.

Am I correct?

Your math is based on a false assumption. The facts determine who claims the kid. There is no choice in the matter. Do the math with nobody claiming the kid.

[MilTaxEA]

Assuming that your numbers are based on the dependent not claiming himself as a dependent and just claiming the education credit, "yes" your math is right.

However, the only refundable education credit is AOC and that cannot be refundable to a student under 24 if a parent is alive and the student did have earned income to cover over half of his/her own support.

[AZ-Tax]

My ProSeries says yes to refundable ed credit age 20

Assuming that your numbers are based on the dependent not claiming himself as a dependent and just claiming the education credit, "yes" your math is right.

However, the only refundable education credit is AOC and that cannot be refundable to a student under 24 if a parent is alive and the student did have earned income to cover over half of his/her own support.

My ProSeries is displaying a refundable AOC credit to single filer, age 20 claiming himself parents alive. I need to check but I dont recall seeing a question regarding parents being alive.

[Lion]

Can NOT claim himself

Can NOT claim himself if parents qualify to claim student. However, without claiming his own exemption, a student can claim education benefits IF his parents can but do NOT claim student as a dependent. Student still does NOT claim his own exemption and will NOT get the refundable part of the education credit.

Now, do your math.

[Burke]

My ProSeries is displaying a refundable AOC credit to single filer, age 20 claiming himself parents alive. I need to check but I dont recall seeing a question regarding parents being alive.

The software does not have the facts to compute whether the child can claim himself or the parents can claim. That has to be decided by the preparer based on the IRC rules regarding support. I have seen the "at least one parent alive at the end of the year," but I think it involved EIC?

[MilTaxEA]

Check out Pub 970: http://www.irs.gov/publications/p970...link1000211799

This shows the requirements to claim the refundable portion of the AOC. It explains them in more detail than my above post. You can find the same material in the instructions for 8863.

[AZ-Tax]

Probleme resloved...somewhat....thanks

Ever have one of those clients that when you ask them a question they want to know what the respose will be if they answer yes and what the response would be if they answer no before answering the question. will I have a few. Yes I know, the answer is always the truthful correct answer. I never got a chance to read the pub and the software does not have all the answers. As we know its the data we enter that determines the outcome. Anyway kid remained dependent on parent return and kid filed his our return. Thanks for your help

[JohnH]

Ever have one of those clients that when you ask them a question they want to know what the respose will be if they answer yes and what the response would be if they answer no before answering the question.

Have I ever had one of those clients?
It depends - why are you asking?