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young Adults with education expenses


Janitor Bob

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I think I understand this, but please read through and see if you agree.

Client is age 21. Did not live with his parents and received no support from them....he provided 100% of his own support. Has education expenses. Since cannot be claimed by parents, he can claim the educations credits...correct?

Client's girlfriend, age 19, lived with client all of 2010. She also received no support from her parents. Girlfriend had zero income, but had education expenses. Client should claim her as a dependent and claim her education expenses as well....correct?

Oh...and on top of this, they have a child and get EIC

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Yes to all of them.

American Oportunity credit for himself and for herself and EIC because of child. All those credits to his return. I didn't see that your dependent has to be blood related in order to claim eduction credits, so you should be OK.

You didn't specified if they lived with her parents, which I believe they didn't. (I don't think you would miss that piece of info on your question).

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Regarding the American Opportunity Credit, either the parents or the child can claim the credit (see pages 13-14 of Pub 970).

This works if the parents income is too high.

Child should be able to obtain at least the $1000 refundable part of the credit, more if his income is high enough.

Work it both ways to see if the benefit of the parent's claiming the child outweighs the child claiming the expense.

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