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?

[TaxGuyBill]

Is the box on line 7 checked?

[Young-TP]

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]

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.

[TaxGuyBill]

On the very bottom of the 8863, how did you answer those three questions?

[Young-TP]

all yes.  If you get a chance look at line 24 of the Paid Preparers Due Diligence Worksheet, says if you answer NO to filing a joint return TP does not qualify for refundable AOTC. 

Talked to a ProSeries tax consultant at Intuit today and he decided TP qualifies.  I still feel funny about 24.

Thank you for your time.

[TaxGuyBill]

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@Young-TP wrote:

all yes. 

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Question #2 asks if the Earned Income is over 1/2 of their support.   Is that the true?  If so, they DO qualify for the Refundable credit (notice 1c in your comment above).

[sjrcpa]

What does under 24 mean? 

🤣 (for the old timers)

[TaxGuyBill]