Form 8863 22(2) incorrect

Forum|Forum|4 years ago
March 9, 2022
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My son attended a community college over the summer (in addition to his regular college). I received and entered the 1098-T's for both colleges. Form 8863 shows the name of both but "Did student receive Form 1098-T for 2021" is NO for the community college (and YES for the other). In the Deductions & Credits, I DO see both 1098-Ts. Why the difference?

JillS56

The requirements for the American Opportunity Tax Credit

Can be claimed in amounts up to $2,500 per student, calculated as 100% of the first $2,000 in college costs and 25% of the next $2,000.
May be used toward required course materials (books, supplies and equipment) as well as tuition and fees.

One of the requirements of for the American Opportunity Tax Credit is that the student be enrolled in a degree seeking program. The courses taken at the community college would not be in a degree seeking program.

You can only claim either the American Opportunity Tax Credit or the Lifetime Learning Credit. You cannot claim both credits for the same student in the same tax year. This would be why it is saying No to the Community College and Yes to the other college.