Aotc

[KumarB]

For tax years 2013, 2014, 2015 and 2016, taxpayer claimed AOTC for dependent on form 8863, however, she did not qualify for credit for 3 of the 4 years due to her AGI exceeding threshold (90K). My question.. can the dependent who worked part time in 2017 claim the AOTC even though it was reported for 4 years already but didn't get credit? Taxpayer will not be claiming dependent on her return..

[ATSMAN]

If the MAGI was higher than the threshold then the student did not qualify, so count the years student claimed and got AOTC

[Kram BergGold]

Question about your Question

I think you saying the parent claimed the child as a dependent in all four years and was prohibited from claiming AOC due to high AGI. If the child had income and could have used the AOC here is what has to happen. First 2013 is past the SOL so forget. For 2014-16 the parent has to file an amended return and remove the child as a dependent. Then the child can refile, does not claim his or her exemption and claims the AOC. If the parent was paying AMT then this will probably save taxes. If parent not paying AMT, I doubt this will work.

[DonB]

For tax years 2013, 2014, 2015 and 2016, taxpayer claimed AOTC for dependent on form 8863, however, she did not qualify for credit for 3 of the 4 years due to her AGI exceeding threshold (90K). My question.. can the dependent who worked part time in 2017 claim the AOTC even though it was reported for 4 years already but didn't get credit? Taxpayer will not be claiming dependent on her return..

I suggest that if the credit was totally phased out, it may not have been claimed. If that is the case, the AOC would still be available if the student had not completed the first four years as described in TTB 12-4.