AOTC Credit - Education Credits

[treedco]

I have a single taxpayer who is 21 years old, not a dependent, and not filing a joint return.  

She had $20k of earned income.  She provided over 50% of her own support.  She has college expenses of approx $1000.  Her parents has claimed her and received the AOTC credit for three years.  Therefor there is 1 year left for someone to claim the AOTC.  Trying to determine her eligibility to claim the refundable portion of the AOTC. 

The IRS says:

You don't qualify for a refundable American opportunity credit if 1 (a, b, or c), 2, and 3 below apply to you.
1. You were:
a. Under age 18 at the end of 2017, or
b. Age 18 at the end of 2017 and your earned income
(defined later) was less than one-half of your support
(defined later), or
c. Over age 18 and under age 24 at the end of 2017 and a
full-time student (defined later) and your earned income (defined later) was less than one-half of your support (defined later).
2. At least one of your parents was alive at the end of 2017.
3. You're not filing a joint return for 2017.

I believe the key important part of the sentence above is 1,2 AND 3.  So if I'm reading right, she would qualify.  She is over 18 but under 24.  She has a parent who is alive.  BUT she is not filing a joint return.  Therefor she doesn't meet the qualifications of ALL 3 items.  So she does qualify for the refundable part of the credit.  Someone please clarify that I am reading this correctly.

Thank You

[itonewbie]

The key point is that your client is not a qualifying child of the parent by virtue of having earned income that was more than one-half of her support, which failed 1c.  Your client is, therefore, eligible for AOTC for this one last year, prima facie.