Originally Posted by FOXHOUND88
#1;This will be my first time filing taxes, and I was claimed as a dependent in the years that I was in college, but I am pretty sure that the tax credits were not claimed for me all of my 1st 4yrs.
#2;I would just like to know if I can claim the AOTC Credit, and if so how do I go about filing for the credit on this years return, or do I need to somehow file a return for the years in which I was school??
#1; Correct.The AOTC offers eligible taxpayers a tax credit of up to $2.5K to qualifying people for college expenses. Either the person who attends school or the person claiming the student as a dependent gets to claim the credit. However, aslongas you are claimed as a dependent, the person claiming you is allowed to claim your educational expenses. you can only claim the AOTC a total of four times. As you are claimed as a dependent the IRS treats any payments made by you for your educational expenses as being paid for by your parents claiming you . For example, if you paid for tuition, either out-of-pocket or through loans taken out in your name only, but your parent claims you as a dependent, your parents get to claim the expenses.
#2;So as said, If your parents plan to claim you as a dependent on their taxes( as a qualifying relative UNLESS your income is higher than $3.9K for 2013),they claim the crdit. but you think you should be able to claim yourself( as your gross income exceeds $3.9K for 2013), the biggest hurdle to overcome is often the support test. you need to provide more than half your own support. Support payments do not include scholarships. For example, if you are awarded a $25K per year academic scholarship, sorry, you can’t include that as support. If you take out a student loan in your name, you can include it as support you pay. However, if it is in your parent’s name, or your parent is a cosigner, your parent is considered to be providing the support.then none of you claims the credit, neither yur parent nor you yourself.
So as mentioned above,, however, that it may still be better overall for your parents to claim you as a dependent aslongas your gross income in 2013 was less than $3.9K. Often, parents are in a higher income tax bracket than the child, which means the exemption will result in greater tax savings for the parents. In addition, if you do not meet certain requirements, you may not be able to claim the refundable portion of the AOTC. This means that your AOTC is limited to offsetting any income tax liability you have(if you have Imean). For example, if you have a tax liability of $800 for the year, your AOTC is limited to $800 if you can’t claim the refundable portion.