Taxpayer's daughter and grand-daughter are potential dependants depending on how support is calculated. The value of the dependancy is in large part a function of the AOTC credit in 2011 and in the future.
The daughter is in her late 20's and has never taken either the Hope or AOTC. She started vet school despite not having a bachelor's degree. The tuition statement has the grad student box checked but I believe she still qualifies for the AOTC credit and will continue to for up to four years until/unless she finished her undergrad. She has very little taxable income so the refundable credit to her would be limited to $1,000 whereas her parents could get the entire $2500 if they can claim her.
Support is the big issue.........I don't think she qualifies because she gets $35,000 in student loans for tuition and living. It appears that the cost of education is included in her support needs and she is providing at least half of it herself via those loans. Thoughts?
Final question that I think is pretty basic...... they pretty clearly support the granddaughter while their daughter is away at school. The child doesn't have tio be their child to get the $1000 child tax credit does she?
The daughter is in her late 20's and has never taken either the Hope or AOTC. She started vet school despite not having a bachelor's degree. The tuition statement has the grad student box checked but I believe she still qualifies for the AOTC credit and will continue to for up to four years until/unless she finished her undergrad. She has very little taxable income so the refundable credit to her would be limited to $1,000 whereas her parents could get the entire $2500 if they can claim her.
Support is the big issue.........I don't think she qualifies because she gets $35,000 in student loans for tuition and living. It appears that the cost of education is included in her support needs and she is providing at least half of it herself via those loans. Thoughts?
Final question that I think is pretty basic...... they pretty clearly support the granddaughter while their daughter is away at school. The child doesn't have tio be their child to get the $1000 child tax credit does she?
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