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Level 4
January 26, 2023
Question

I need clarification about AOC. TP is under 24 and meets conditions so TP cannot take refundable AOC but 8863 line 8 is saying TP gets a refundable AOC. How do i change that?

  • January 26, 2023
  • 1 reply
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1 reply

Level 15
January 26, 2023

Is the box on line 7 checked?

Young-TPAuthor
Level 4
January 27, 2023

No the box by 7. is not checked. Does'nt  the program take all entered information into consideration and complete the forms automatically? 8863 is showing a refundable AOC on line 8 and  nonrefundable AOC on line 9.  My confusion is because the AOC instructions on the IRS website state:

you do not qualify for a refundable credit if items 1 (a, b, or c), 2, and 3 below apply to you. 

1) You were:

a. Under age 18 at the end of the year, or 

b. Age 18 at the end of the year and your earned income was less than one-half of your support, or 

c. Over age 18 and under age 24 at the end of the year and a full-time student and your earned income was less than one-half of your support. 

2) At least one of your parents was alive at the end of the year.

3) You are filing a return as single, head of household, qualifying widow(er), or married filing separately for the year.

TP is 21 supports self, filing as single, has a living parent. Does TP qualify for partial refundable?

 

Camp1040
Level 10
January 27, 2023

Looks like TP does not meet  Line 1 requirement, unless your statement about TP supporting self does include earned income. Since all the conditions need to be met then the TP should receive the credit.