AOC Credit

[mariaefletes]

I have a client that brought me a 1098-T with $15250 in box 2 and $5750 in box 5. I know I have to subtract the amount in box 5 from the amount in box 2. I real question is would she even qualify for the credit with an income amount of $7586 and she is under 24 so other facotrs came into play such as if any of the parents are alive, if she is filing single and so forth. Which both are yes in this case. Parents are alive and she is filing single. After reading the section in the taxbook on the AOC, I am in doubt if she is actually able to get it.

[KBTS]

Why aren't the parents claiming her as a dependent? If they could claim her, they could possibly get the AOC on their return. However if they are eligible to claim her but do not, she could get the AOC on her return but not the refundable portion.

[mariaefletes]

would it make a difference if she does not live with her parents?

[Burke]

If she is a full-time student under age 24 and is just living in a dorm at the school, or apt nearby, it is considered a temporary absence and not counted.

[dan doshan]

I have a client that brought me a 1098-T with $15250 in box 2 and $5750 in box 5. I know I have to subtract the amount in box 5 from the amount in box 2. I real question is would she even qualify for the credit with an income amount of $7586 and she is under 24 so other facotrs came into play such as if any of the parents are alive, if she is filing single and so forth. Which both are yes in this case. Parents are alive and she is filing single. After reading the section in the taxbook on the AOC, I am in doubt if she is actually able to get it.

15250 plus in school expenses, most likely she got student loans, W2 wages of 7586, etc. It might be hard for the parents to justify that the client did not provide over half of her own support. However, in order for the client to get any refundable portion of the AOC she would have to have provided over half of her own support via earned income, which might also be hard to justify.

[FEDUKE404]

I would seek a credit

15250 plus in school expenses, most likely she got student loans, W2 wages of 7586, etc. It might be hard for the parents to justify that the client did not provide over half of her own support. However, in order for the client to get any refundable portion of the AOC she would have to have provided over half of her own support via earned income, which might also be hard to justify.

Well, not necessarily....

See http://www.thetaxbook.com/forums/showthread.php?t=19005

Of course, assuming the Form 1098-T numbers are even reliable in the first place , the establishment of loans does not change things significantly. In all likelihood, either parent or student is entitled to some current AOC relief.

FE