Dual enrollment, no 1098-T, 24 college credits

Forum|Forum|4 years ago
April 12, 2022
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Okay, my daughter took 15 hours of dual enrollment in the Spring '21. She'll graduate with 24 hours of college credit. We didn't get a 1098-T. Payment is made out to the high school, although she is enrolled at the community college. I'm unclear on whether we can take the education credits. I saw somewhere that unless payment is made out directly to the actual college, you cannot take the credit. I still haven't verified that. If we have the opportunity to take either credit, which would be the best with the amount of hours she has? She needs 2 more classes to complete her freshmen year, however, the cost per credit will be considerably more once she enters college. I don't know whether to hold off and save the American Opportunity Credit for when she enters college in the Fall.

Not A Product Question

KrisD15

No,

Those payments cannot be used for an education credit.

Going forward, the American Opportunity Tax Credit is the more valuable credit, and may only be used 4 times per undergrad student. It maxes out with 4,000 expenses. If there is a year you have less than 4,000 in expenses to put towards that credit, you might hold off on it if you think you will have more opportunities to claim that credit later with the restrictions of only four times and only as an undergrad.

According to the IRS:

Example 3. During the 2020 fall semester, Larry was a
high school student who took classes on a half-time basis
at College X. Larry wasn't enrolled as part of a degree program at College X because College X only admits students to a degree program if they have a high school diploma or equivalent. Because Larry wasn't enrolled in a
degree program at College X during 2020, Larry wasn't an
eligible student for tax year 2020."

IRS Pub 970

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