Question

American Opportunity Tax Credit for Graduation Year

Forum|Forum|6 years ago
June 23, 2019
1 reply
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Background: I just graduated from a 4-year university in May 2019. My university goes by a semester system, lasting from August to May. I'm not too sure how the academic school years are treated compared to calendar years for tax purposes.

Question: Am I still eligible for the American Opportunity Tax Credit for the 2019 tax year, despite only being enrolled as a full-time student for 5 months (January to May) out of the year. (I have only claimed this credit once before: on my 2018 tax return).

Hal_Al

Employee

The IRS goes by tax year, which for 99% of people is the calendar year. It does not matter, for purposes of claiming the credit**, how long you were in school. You may claim the credit, for 2019, since you have not already claimed it four previous times***.

There is one important condition: you must actually have paid tuition (and/or other qualified expenses) in 2019. So, if you paid for the Jan-May semester, in December 2018, you may not count that payment on your 2019 tax return. You may count that payment for tax year 2018.

**The five month rule does not matter for claiming the tuition credit. But, for your parents to claim you as a qualifying child dependent, you must of been a full time student for parts of at least 5 calendar months.

*** You say you only claimed the American Opportunity Tax Credit (AOTC) one previous time. For the four time rule, you must also count any times your parents claimed it for your education, when you were their dependent.

Also, be aware that there are restrictions on students under age 24 claiming the refundable portion of the AOTC, unless they support themselves with earned income.