Ok so… I'm a full time college student, and roughly make 10k a year while on campus. I also have a loan under my name (co-signed by parent) for 60k.
Now I want to claim the AOTC and get a 1k refund, but I want to know if I would qualify as "independent" due to my income and also the loan I have.
AOTC | American Opportunity Tax Credit
byu/Certain_Radish_62 intax
Posted by Certain_Radish_62
1 Comment
Assuming you spent $60k from that loan on your expenses, you did not earn more than half your support costs ($10k << 0.5* $60k), so unless you were 24 or older at the end of 2024, you cannot claim the refundable portion of the AOTC. Your parents can claim you as a dependent and claim the credit due any required educational expenses that were not covered by tax-free scholarships.