Aoc refund

[TAX4US]

Am I reading right? 23 year old, totally self supporting, final year of school cannot get refundable part because parents still alive? What does parents being alive got to do with this situation?

[David1980]

They may be able to qualify for the refundable portion, if their earned income was more than one-half of their support.

If their support isn't coming form earned income, I'd agree with your assessment. The parents being alive has to do with this situation because that's what congress gave us.

[TAX4US]

Tp is a teacher fully self surporting living in different state. Did notget any support from parents in 2012. I still can't see where parents being alive have to do with this. They can't get the refundable as I understand it. Maybe my thinking is wrong.

[BP.]

They can't get the refundable as I understand it.

Maybe you already had a look here, but check p. 4-5, instructions for line 7:

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

Besides the language giving the qualifications, there's a little Q&A this year to help determine if qualified. Maybe running through that will help.

[geekgirldany]

Looking at the instructions it says for line 7,
You do not qualify for a refundable American opportunity
credit if 1 (a, b, or c), 2, and 3 below apply to you.

So all three have to apply. That threw me off at first but in my case the support issue allowed them to claim it.

[BP.]

support issue allowed them to claim it.

Yep, which should be OP's outcome, as David1980 suggested. Going through that Q&A makes it easier to ascertain.

[RitaB]

Sorry to Change the Subject

The parents being alive has to do with this situation because that's what congress gave us.

I wish I had read this before my last client came in here. Why do clients ask you about something, and then whine, "Well, I don't see why..."?

That is a rhetorical question, but thank you, David. I'm making a poster.

[dtlee]

This is totally based on the rules for the Kiddie Tax.

I created this flow chart last year in response to similar questions here.

If it helps, feel free to share:

http://nytaxexperts.org/shared/RefundableAOCFlowchart.pdf

[Lion]

Thank you for sharing. I just printed one out for my "book" that I refer to.

[Burke]

This is totally based on the rules for the Kiddie Tax.

You are right. He is running into this situation due to the kid's age and student status.