Educational Credits
Parents income is too high to take any college tuition credits. I am taking the student off of the parents return as a dependent so he can file and supposedly get the form 8863. Here is what I have done on the students tax return. On the Information Worksheet, Part X I have checked the box for education expenses. For Dependent of Someone Else I have check "Yes" that he could be claimed by the parent. The next box I checked "No" that he is not claimed on the parent's return. "No" on that line is suppose to allow the student to take student loan interest and the college credits. Tuition is $10754. Student's AGI is $8934. At the bottom of form 8863 (Addl questions under age 24) when I check the box 'No" in item 2 regarding earned income exceeding 1/2 of your support the credit disappears.
Using the ITA on IRS.gov it says a credit is allowed. Any suggestions.
