Am. Opportunity Tax Credit For Dummies

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills.
Post Reply
Topic Author
LifeIsGood
Posts: 1321
Joined: Mon Feb 11, 2008 7:43 pm
Location: Atlanta, GA

Am. Opportunity Tax Credit For Dummies

Post by LifeIsGood »

I'm helping a friend do a tax return with a 1098-T that has more scholarship than college expenses. Since the scholarship is unrestricted, I believe there is a way for the student to claim the $1,000 refundable part of the AOTC but am unsure of the mechanics. How much of the scholarship should be allocated to income? The student has no tax liability if that matters.
Is there an easy to understand source to help work through this issue?
Asyouwish
Posts: 491
Joined: Tue Aug 04, 2020 6:20 am

Re: Am. Opportunity Tax Credit For Dummies

Post by Asyouwish »

Try Publication 970. https://www.irs.gov/pub/irs-pdf/p970.pdf

See page 5 TIP coordination Chapter 2 and 3.
Post Reply