SecondCor521
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My 23 year old son probably earned more than $4,050 this year at his job from January through April. He plans to be a half time college student starting this summer. I intend to pay for his college expenses.
It appears that he does not qualify as my dependent, because he fails the "full time student" test to be a qualifying child, and fails the gross income test to be a qualifying relative.
Regarding the AOTC, he does meet the four part test for being an eligible student and will have qualified educational expenses this year.
The question I have is this: Can I pay the first $4K out of pocket for his college costs and then have him claim the credit on his tax return? The IRS site says that "you" have to pay qualifying expenses. If he were my dependent and he paid for it I would be able to treat amounts paid by him as being paid by me. But this is the reverse of that situation.
I could gift him the $4K with the understanding that he use it for those expenses. I know the IRS has the "substance over form" rule or whatever, so they might treat it as me paying for it rather than him.
It appears that he does not qualify as my dependent, because he fails the "full time student" test to be a qualifying child, and fails the gross income test to be a qualifying relative.
Regarding the AOTC, he does meet the four part test for being an eligible student and will have qualified educational expenses this year.
The question I have is this: Can I pay the first $4K out of pocket for his college costs and then have him claim the credit on his tax return? The IRS site says that "you" have to pay qualifying expenses. If he were my dependent and he paid for it I would be able to treat amounts paid by him as being paid by me. But this is the reverse of that situation.
I could gift him the $4K with the understanding that he use it for those expenses. I know the IRS has the "substance over form" rule or whatever, so they might treat it as me paying for it rather than him.