if a relative - grandparent or aunt/uncle etc. – helped pay for a student’s college bills, is there any type of tax relief? can they claim AOTC? anything else that might be a tax benefit to the relative? (the kid is not their dependent, just a loved one . . )
No, I don’t think so, but if the parents claim AOTC maybe they could give the credit to the grandparents?
Some states give tax credits for 529 contributions.
can aotc be only claimed by one person for each student?
Yes; the AOTC based on a single student cannot be split among multiple claimants.
Relative can make a gift to parent. Parent pays expenses, takes credit.
Essentially the relative would simply need to give less $ bc of the credit (where applicable).
No.
Families should be aware that there are income limits for claiming AOTC. I think it’s ~$80k so it may not affect OP, but it’s something to keep in mind.
The modified AGI limit is $180k for MFJ filers, and $90k for all others.
But it starts tapering off at $80k for singles. By $90k in income, there is not much left of the AOTC.
The answer is still no, there are no tax credits available to a relative who gifts money to a non dependent relative.