Can a 19 year old get AOTC? She made 12K, has a child of her own and says she's independent.

[jklcpa]

20 minutes ago, Randall said:

I'm not sure if I'm reading this correctly.  Person under 24 provides over 50% of his support.  Rule 1c.  But when answering the questions, both ATX and IRS 8863 instructions, question 5 seems to contradict things.  Was your earned income LESS than half your support?  If I answer no, this means it is greater than half.  But it tells me to stop, you canNOT take the refundable part of the credit.  If I answer yes (which is inaccurate), it tells me to continue, then with a living parent, not filing a joint return, it again says you don't qualify for the refundable part of the credit.

 

I can't answer about what ATX is doing, but here is the section from the 8863 instructions.  I don't see a contradiction.  See bold that is mine where it says "you DO qualify."

Quote

4.   Were you age  18 at the end of 2020? If yes, go to question 5. If no, go to question 6.
5.   Was your earned income  (defined  later) less than one-half of your support (defined  later) for 2020?
If no, stop here;  you DO qualify to claim part of your allowable American opportunity credit as a refundable credit. If yes, go to question 6.
6.   Were either of your parents alive at the end of 2020? If no, stop here;  you do qualify to claim part of your allowable American opportunity credit as a refundable credit. If yes, go to question 7.
7.   Are you filing a joint return for 2020?  If no, you don't qualify to claim part of your allowable American opportunity credit as a refundable credit. If yes, you do qualify to claim part of your allowable American opportunity credit as a refundable credit.

 

[Randall]

24 minutes ago, jklcpa said:

 

I can't answer about what ATX is doing, but here is the section from the 8863 instructions.  I don't see a contradiction.  See bold that is mine where it says "you DO qualify."

 

Thanks for that.  I must be bug eyed.  I read that several times and was thinking Do NOT.  Sheesh.  And ATX concurs.

[Randall]

This thing just keeps getting better.  Household, father & mother.  Daughter has a baby.  Father of baby also living in household but not married.  Daugher's income is low not enough to claim half of her support.  Father of child income is low but high enough to claim over half of his support.  (His parents not claiming him, they are not my client).  I was going forward with father & mother (grandparents of baby) claiming both daughter & baby.  Father of baby claimng himself only.  But if father of baby claims the baby, he not only gets $1400 additional child credit, $1100 stimulus, but now qualifies for EIC (under age 25 but with a child) of $3400.  A bigger benefit than grandparents claiming the baby (by about $3000).   My question is can he claim the baby in these circumstances.  Lived in the same household with the baby.

[Catherine]

There is only ONE answer now:

[Lion EA]

Gee, did the daughter get unemployment, too, and the boyfriend get APTC, and the parents had a Covid-related IRA distribution, and the baby has a bank account/kiddie tax, and dad worked in NY or another state that decoupled from The CARES Act, and...

[Randall]

1 hour ago, Lion EA said:

Gee, did the daughter get unemployment, too, and the boyfriend get APTC, and the parents had a Covid-related IRA distribution, and the baby has a bank account/kiddie tax, and dad worked in NY or another state that decoupled from The CARES Act, and...

Ha ha.  You're trying to make it harder.

 

[Pacun]

20 hours ago, Randall said:

I'm not sure if I'm reading this correctly.  Person under 24 provides over 50% of his support.  Rule 1c.  But when answering the questions, both ATX and IRS 8863 instructions, question 5 seems to contradict things.  Was your earned income LESS than half your support?  If I answer no, this means it is greater than half.  But it tells me to stop, you canNOT take the refundable part of the credit.  If I answer yes (which is inaccurate), it tells me to continue, then with a living parent, not filing a joint return, it again says you don't qualify for the refundable part of the credit.

I am getting the same results. I think I have filed a couple of AOC for someone under 24 and I have not answered those questions. I have efiled and IRS has issue the refund. I wonder if they will get a letter later on. I am sure I did one a couple of years ago and I haven't heard anything.