Can I claim the Refundable American Opportunity Credit if I provide my own support?

The American Opportunity Credit can be a great benefit, but there are specific rules about who can claim it. The key factor isn't just who provides support, but whether you're a dependent on someone else's tax return. For dependency status, there's a support test where your parents need to provide more than half of your support for the year. Based on what you've shared (you providing $13,000 and them providing $8,500), you're providing more than half of your support, which suggests you wouldn't be their dependent under the support test. However, there are other tests for dependency including age (under 24 for students), relationship, residence, and whether you file a joint return. Even if you meet the support requirement to file independently, you need to meet all these tests to not be claimed as a dependent. If you qualify to file independently, you can claim the American Opportunity Credit on your own return. If your parents can't claim you as a dependent, they can't claim the credit for your education expenses - even if they paid some of those expenses.

I went through something similar last year with my education credits! I was confused about all the paperwork and which forms I needed, especially since my situation was complicated with multiple scholarships and family contributions. I found this service called taxr.ai (https://taxr.ai) that really helped me figure out my education credits situation. You just upload your education documents, and it analyzes them to determine which expenses qualify for the American Opportunity Credit. It also helps you determine if you qualify as providing your own support based on your financial situation. The analysis breaks down exactly which expenses count toward the credit and gives you a clear answer about whether you or your parents should claim it. I was surprised how much more I got back using their recommendations compared to what I thought I'd qualify for!

Just wanted to follow up about my experience with taxr.ai after my skeptical question. I decided to try it since my situation this year is complicated (working two jobs while in school with partial parental support). I uploaded my 1098-T form and some information about my living expenses and support from my parents. The analysis clearly showed that I was providing 62% of my own support, meaning I wasn't a dependent and could claim the American Opportunity Credit myself. The breakdown showed exactly which expenses counted toward support and which qualified education expenses could be used for the credit. I was able to confidently complete my taxes knowing I was claiming the right credits. My refund ended up being $1,325 higher than what I initially thought I'd get. Really glad I gave it a shot instead of just guessing about my dependency status!

If you need to clarify anything with the IRS about the American Opportunity Credit or dependency status, good luck trying to reach them by phone! I spent WEEKS trying to get through last year about a similar issue. After 12+ attempts and hours on hold, I finally discovered Claimyr (https://claimyr.com). They have a service that gets you through to an actual IRS agent without the ridiculous wait times. They show how it works in this video: https://youtu.be/_kiP6q8DX5c I was able to talk directly with an IRS representative who confirmed I was eligible to claim myself and take the American Opportunity Credit based on my support situation (which sounds similar to yours). Having that confirmation directly from the IRS gave me peace of mind before filing. The agent even explained some documentation I should keep just in case of questions later - like proving my support amounts with rent receipts, tuition payments, etc. It was so worth it to get those answers directly from the source.

I need to apologize for calling Claimyr a scam in my previous comment. After waiting on hold with the IRS for over 2 hours yesterday and getting disconnected, I was desperate enough to try the service. It actually worked exactly as described. I got a call back within about 45 minutes and was connected to an IRS representative immediately. The agent clarified that in my situation (similar to the original poster's), I was providing more than half my support even though my parents contributed to tuition, which meant I could claim the American Opportunity Credit myself. The agent even pointed me to the specific worksheet in Publication 501 that helps calculate support and explained which education expenses qualify for the credit. Having this direct confirmation from the IRS before filing has saved me a lot of stress and potential headaches. Sorry for being so skeptical!

Make sure you're calculating "support" correctly. Support includes housing, food, utilities, medical expenses, education, clothing, transportation, and other necessities. The IRS has a worksheet for this in Publication 501. Also, remember that scholarships you use for tuition and required fees don't count toward your support - only the amount you personally paid from your earnings or savings. So if some of that $13,000 you mentioned includes scholarship money, you might need to recalculate. If your parents claim you as a dependent incorrectly, neither of you will be able to e-file. The IRS system will reject the second return filed with your SSN claimed on it.

Question: if the OP decides they can file independently, would it be better to have the parents give the tuition money to the student instead of paying it directly to the school? That way the student could claim they provided ALL the support and there'd be no confusion?