Education credit revisted

[TAXMAN]

Ok this is for tax year 2011. TP lived at home except for finishing school. TP had w-2 wages of 3782 and no unearned income. Turned 24 in 2011. parents used AOC in 2009,2010 and tried to use it in 2011. IRS took credit out but left dependent status intact on parents return. Could TP go after AOC in 2011 even though she is dep on parents return. Parents had to cosign loan for tp to finish school.(first sem 2011). 1098T in hand with all revelent boxes checked. I may reading to much into this issue. What is consenses? Thanks

Could parents amend for the LLC and leave TP alone?

[Guest Taxed]

Who Can Claim a Dependent's Expenses

If there are qualified education expenses for your dependent during a tax year, either you or your dependent, but not both of you, can claim an American opportunity credit for your dependent's expenses for that year.

For you to claim an American opportunity credit for your dependent's expenses, you must also claim an exemption for your dependent. You do this by listing your dependent's name and other required information on Form 1040 (or Form 1040A), line 6c.

IF you... THEN only... claim an exemption on

your tax return for a

dependent who is an

eligible student you can claim the American opportunity credit based on that dependent's expenses. The dependent cannot claim the credit. do not claim an exemption on your tax return for a dependent who is an eligible student (even if entitled to the exemption) the dependent can claim the American opportunity credit. You cannot claim the credit based on this dependent's expenses.

Expenses paid by dependent. If you claim an exemption on your tax return for an eligible student who is your dependent, treat any expenses paid (or deemed paid) by your dependent as if you had paid them. Include these expenses when figuring the amount of your American opportunity credit.

[kcjenkins]

As long as the child is a dependent, only the parents can claim the credit. If they are entitled, file a 1040X with the worksheet and documentation. Often those IRS-generated 'changes' are wrong.

[Guest Taxed]

OP did not state what the reason was in the IRS notice denying the AOC?