Anyone claim the American Opportunity Education credit on your taxes?

[frannn]

We claim DD20 as a dependant, and pay her college fees. It looks like this credit will benefit us more than the Tuition and fees deduction, but I am confused about our eligibility to get both the refundable and non-refundable portions. Could someone help me to understand what the following means:

You do not qualify for a refund if 1,2, and 3 below apply to you (when speaking about the refundable portion)
1. You were:
a. Under age 18 at the end of 2009, or (DD was 20)
b. Age 18 at end of 2009 and your earned income was less than 1/2 your support, or (DD over age 18)
c. A full time student over 18 and under 24 at end of 2009 and earned income was less than 1/2 your support (her earned income was 8200, ours was much more)
2. At least one of your parents was alive at end of 2009 (both her dad and I)
3. You are not filing a joint return for 2009. (She is not filing joint return, but we are, and we are claiming her as a dependant).

If I am interpreting this correctly, we do qualify for a reund. Am I right?
Also, as long as our tax liability exceeds our credit, we can still receive a refund for overpayment, correct?

 

[BridgetBordeaux]

I am not a tax professional.

Having said that, you seem to be intermingling her situation with your situation.

You are filling out your joint return and you pay your DD's college bills.

I believe you are allowed claim it. Your joint income determines how much of the refundable money you are entitled to.

IRS Publication 970 has all the details.

 

[mybabesuz]

That all applies to your DD.
She cannot claim the credit because she is eligible to be claimed by you.
BUT you can claim the credit.