American Opportunity and lifetime credit

Forum|Forum|6 years ago
February 20, 2020
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Hello,

I was on F-1 OPT in 2019. I married to Green card holder in mid 2019 and also finishes my 5 years on F-1 visa in July 2019. I did my masters from 2014 to 2016 and right now doing my second master having 1098-T from current university. I'm married filing jointly with my wife as primary filer. My question is Can I claim American Opportunity and lifetime credit on my tax form? Or Is there any consequences?

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klehnhardt

No, you are not eligible to receive the American Opportunity Credit (AOC). If you have completed four years of undergraduate studies, you cannot take the AOC credit. You are eligible to take the Lifetime Learning Credit. or the Tuition and Fees Deduction, whichever one gives you the greatest benefit. You are only allowed to claim one of the educational benefits in any one tax year.

You said you completed your 5-year exemption J-1 exemption in July 2019. That would mean you entered the U.S. in 2014. Per the IRS you ended your exemption period on 12/31/18. The rule states, "Part of any 5 years". Once you were present 31 days in 2019 and a total exceeding 183 days in 2019 you became a resident alien per the Substantial Presence Test.

taxpayer92Author

But I didn't completed my 4-year degree in United states and never claimed American Opportunity and lifetime credit from 2014 when i came in U.S. And one more correction to your response, I'm on F-1 not J-1.

klehnhardt

The exempt rules are also 5 years on the F-1 Visa.

If you are taking courses toward your Master’s degree Box 9 on the Form 1098-T will be marked.

Have box 9 marked will make you ineligible to take the American Opportunity Credit. In the United States, you need to have a 4-year Bachelor degree to study for your Master’s degree.