College Student Strategies

General information: This strategy involves a situation where a college student’s parents have a Modified Adjusted Gross Income (MAGI) too high to qualify for education tax credits, specifically the American Opportunity Tax Credit (AOTC). If the student meets certain criteria, particularly regarding their dependency status (meaning they cannot be claimed as a dependent by their parents, usually because they provide more than half their own support), the student may be able to file their own tax return and claim the AOTC themselves, even if their parents paid the tuition expenses.