Expenses paid by others. Someone other than you, your spouse, or your dependent (such as a relative or former spouse) may make a payment directly to an eligible educational institution to pay for an eligible student's qualified education expenses. In this case, the student is treated as receiving the payment from the other person and, in turn, paying the institution.
However, I'm curious - How did the student support himself? If someone else provided more than 1/2 his own support, he is possibly a dependent of someone else? If listed as a dependent on another persons return, he can not claim the credit. Possibly he had lots of unearned income, or lived off savings?
Since he is over 24, the exclusions would not apply.
If they meet all the other qualifications - 1/2 time student for at least one academic period, undergrad in a degree program, etc. - they would receive the refundable credit.
Oh yea, I forgot - there is no requirement for having "earned income" to receive the refundable part.
Mike
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AOC Refundable Ed Credit
I have not encountered this before
and I believe what I have a question on is "no earned Income"
Client would file a return showing no earned income -- Age 29, but has Education credit - paid for by another party not claiming as a dependent - 4 year AOC or Hope not claimed prior
Entering that way on the return, Client would receive $ 1,000 refundable AOC
Is that possible?
Sandy
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