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March 9, 2024
Question

Am I still eligible for American Opportunity Credit?

  • March 9, 2024
  • 2 replies
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Will I still be eligible for American Opportunity Credit? I downloaded my previous year's return from TurboTax (2018-2022). I scanned them for the line that says form 8863, out of five return documents, only two had any numbers written on the line that says "form 8863". If the line is blank, does that mean the credit wasn't claimed? I have been in school for all these 5 tax years since I also went to community college, so I am confused. Thank you in advance for any answers

2 replies

DawnC
Employee
March 9, 2024

Did you complete 4 years of post secondary education before January 1st 2023?   If yes, you can't take the credit.   If no, you can take the credit.   To be eligible for the American Opportunity Credit, a student must not have completed the first four years of post-secondary education as of the beginning of the taxable year (Jan 1, 2023).

 

The "first four years" refers to the amount of academic credit that has been awarded.  Generally, it's what schools use to classify students (junior, senior, etc.).  A student who had not received more than four years of academic credit before 2023 would meet the year of study requirement under the American opportunity credit rules.

 

If you are unsure of whether you meet the year of study requirement, the school will be able to tell you how much academic credit was already awarded at the beginning of 2023.

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Hal_Al
Employee
March 10, 2024

As you appear to know, in addition to the requirement of not having completed 4 years of post secondary education before January 1, 2023, there is a limit of only being able to claim the American Opportunity Credit (AOC), four times in your undergrad career. Any times that your parent claimed the credit, while you were their dependent, also count for your four times. 

 

The AOC consists of two parts, a refundable credit and a non refundable part.  As such, the AOC may appear on two lines on the tax forms.

 

2018: Line 50 of Schedule 3 and line 17c of Form 1040

2019: Line 3 of Schedule 3 and line 18c of Form 1040

2020-22: Line 3 of Schedule 3 and line 29 of Form 1040