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Old 04-13-2014, 09:52 PM
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AOTC Tax Credit HELP PLEASE!!

Hello, I am having an issue in determining whether or not I can claim the AOTC Tax Credit for this year. I am currently 24, but will be 25 in May. I was told by someone who works at HR Block that I could claim the credit and possibly receive a refund for the years I was in college.

I graduated college in 2012 as a 5th year senior, and have 1098-Ts for 2010 -2012.

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.

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??



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Old 04-14-2014, 03:47 AM
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Originally Posted by FOXHOUND88 View Post

#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.



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Old 04-14-2014, 01:14 PM
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I graduated in May of 2012. And after graduating I worked for a year earning a little over $9k. And the payments made for my school through loans are in my name. In addition, I have a 1098-E for tax interest tax I will be deducting, so I have calculated my total tax to be 0. In addition, most of my support came from student loans, and my mother wil not be claiming me as a Dependent.

But My issue is how do I go about claiming the credit for the years in which a credit was never claimed and I didn't file a tax return for 2010-2012? And as a as the certain requirements, that is confusing me a little since I am about to turn 25 in May.



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Old 04-15-2014, 04:22 AM
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Originally Posted by FOXHOUND88 View Post
I graduated in May of 2012. And after graduating I worked for a year earning a little over $9k. And the payments made for my school through loans are in my name. In addition, I have a 1098-E for tax interest tax I will be deducting, so I have calculated my total tax to be 0. In addition, most of my support came from student loans, and my mother wil not be claiming me as a Dependent.

But My issue is how do I go about claiming the credit for the years in which a credit was never claimed and I didn't file a tax return for 2010-2012? And as a as the certain requirements, that is confusing me a little since I am about to turn 25 in May.
But My issue is how do I go about claiming the credit for the years in which a credit was never claimed and I didn't file a tax return for 2010-2012? =======>>As said aslongas you were claimed by your parents during those years then you can’t claim your AOTC since persons claiming you as a dependent get to claim the credit.

NOTE; as said It is a tax credit of up to $2.5K of the cost of tuition, fees and course materials paid during the taxable year. Also, 40% of the credit ,up to $1k, is refundable. This means you can get it even if you owe no tax.

And as a as the certain requirements, that is confusing me a little since I am about to turn 25 in May.========>>>>>>>>>>>>>>>regardless of your age, 25>24, unless yur gross income was more than $3,900, your parents, aslongas they meet the requirements to claim you, can claim you as their dependent as qualifying relative. , 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),then you can’t claim it.

If a student has not completed the first four years of post-secondary education as of the beginning of the taxable year, and has not claimed the AOTC for more than four taxable years, the student can claim the AOTC for qualified expenses paid during the entire taxable year.



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