• Owen, age 69 and Kimberly, age 64 elect to file Married Filing Jointly. Neither taxpayer is blind. • Owen is retired. He received Social Security benefits and a pension. • Owen and Kimberly's daughter Shelby, age 20, is a full-time college student in her third year of study. She is pursuing a degree in nursing and does not have a felony drug conviction. She received a Form 1098-T for 2023. Box 7 was not checked on her Form 1098-T for the previous tax year. • Shelby spent the summer at home with her parents but lived in an apartment near campus during the school year. • Shelby received a scholarship that paid the full tuition. Owen and Kimberly paid the cost of course-related books in 2023 not covered by scholarship. They paid $120 for a parking sticker, $5,500 for a meal plan, $850 for textbooks purchased at the college bookstore, and $200 for access to an online textbook. • Owen and Kimberly paid more than half the cost of maintaining a home and support for Shelby. • Owen and Kimberly do not have enough deductions to itemize on their federal tax return. • Owen, Kimberly, and Shelby are U.S. citizens and have valid Social Security numbers. They all lived in the United States for the entire year. • If Owen and Kimberly receive a refund, they would like to deposit it into their checking account. Documents from Baldwin Bank show that the routing number is 111000025. Their checking account number is 11337890. 16. Owen and Kimberly can claim the Credit for Other Dependents for Shelby. True or False? Use 2023 data

False. Owen and Kimberly cannot claim the Credit for Other Dependents for Shelby because this credit is generally for dependents who do not qualify for the Child Tax Credit. In this case, Shelby may qualify for the American Opportunity Tax Credit (AOTC) or the Lifetime Learning Credit (LLC) since she is a full-time college student in her third year of study, and her parents paid for qualified education expenses not covered by a scholarship. The AOTC is available for the first four years of post-secondary education, and it requires the student to be pursuing a degree or other recognized education credential, to be enrolled at least half-time for at least one academic period beginning in the tax year, and to not have a felony drug conviction. Since Shelby meets these criteria, Owen and Kimberly may be eligible to claim the AOTC for her, assuming they meet the income requirements and other qualifications. The Credit for Other Dependents is typically for dependents who are either too old to qualify for the Child Tax Credit or who do not meet the Child Tax Credit's relationship, age, or residency tests, but it does not apply in this situation since Shelby is likely eligible for the AOTC.

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