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    #1

    aoc revisted

    Ok this is for tax year 2011. TP lived at home except for finishing school. TP had w-2 wages of 3782 and no unearned income. Turned 24 in 2011. parents used AOC in 2009,2010 and tried to use it in 2011. IRS took credit out but left dependent status intact on parents return. Could TP go after AOC in 2011 even though she is dep on parents return. Parents had to cosign loan for tp to finish school.(first sem 2011). 1098T in hand with all revelent boxes checked. I may reading to much into this issue. What is consenses? Thanks



    Could parents amend for the LLC and leave TP alone?
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    #2
    Looks to me like child misses dependency tests by two factors:

    1. Qualifying Child: Age Test: Not under age 24 by end of 2011. Can't be QC.
    2. Qualifying Relative:Gross Income Test: Income not under $3,700. Can't be QR.

    Ergo, can't be dependent of parents. And no AOC for them due to that fact. Child could file and claim self, but would appear not to owe any tax. So only thing he would get is the $1,000 refundable credit plus any withholding.

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      #3
      Agree with Burke.

      Interesting that they disallowed the education credit on the parent's return, but not the exemption? What was the reason they disallowed the credit for the parents? For example, if the income was lower and they qualified under QR rules the parents would still be eligible to claim the credit. That they left the exemption but removed the credit makes me wonder if there was some other reason they disallowed the education credit. If so, could affect whether the student can claim it. For example, if they discovered the student wasn't at least half time that would prevent the student from claiming the credit same as the parents. Or if the hope credit was taken in 2007 and 2008.
      Last edited by David1980; 11-25-2013, 05:50 PM.

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        #4
        Amt

        Could parents have been subject to AMT? If so maybe IRS disallowed the exemption and as it did not affect the tax you did not notice it. For the kid to get AOC you have to make sure the kid does not show up as a dependent on parents return. Maybe you need to amend it?

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