2012 Macbook Air won't connect to Apple TV

My macbook air will no longer connect to my Apple TV. The software is up to date on both devices and they have a strong wifi connection on the same network. Home sharing is turned on and I've tried having the bluetooth turned on and off but neither makes a difference. I've unplugged and restarted both devices multiple times. The airplay option is still in the toolbar and shows the apple tv but every time I try to connect it says "could not connect to "Apple TV". My iPhone 5 will connect no problem so that tells me the issue is with my mac. So frustrated!! Help!