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April 25, 2020
Question

I'm enrolled in a 4 years college degree program. Last Year I received American opportunity credit of $1,000 in 2018 tax return. Should I be getting this in 2019 as well?

  • April 25, 2020
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2 replies

April 25, 2020

It depends on whether you had any out of pocket education expenses that are eligible for the American Opportunity Tax Credit (AOTC).  The AOTC is available to claim for your first four years of college.  Receiving the AOTC on your tax return is not just an automatic result of being enrolled in school; you have to have paid your expenses from your own funds or through loans.

 

Use the steps below to enter the information from your Form 1098-T and then your other education expenses to determine whether you are eligible for the AOTC credit in 2019.

 

Start by going to the Education section of your return using these steps:  

  • On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)
  • This opens a box where you can type in “education” (be sure to enter exactly as shown here) and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
  • The search results will give you an option to “Jump to education
  • Click on the blue “Jump to education” link

Then, if you are not prompted to enter your 1098-T, go through the entire education expenses section (without entering any information yet) of your return until you reach the screen titled “Your Education Expenses Summary”, then follow these steps:

  • Click Edit next to the student name.
  • On the screen titled “Here’s your Education Summary”, click Edit beside Tuition.
  • Enter the information from your Form 1098-T.

 

 

@znawaz99

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Hal_Al
Employee
April 25, 2020

It may be that you made an error on your 2018 tax return and should not have received the American opportunity credit  (AOC). 

 

There's a new urban myth among college students that says they can get a $1000 from the government just for filing a tax form. For most of them, they simply aren't eligible. A full time unmarried student, under age 24, is only eligible for the refundable portion of the American Opportunity Credit if he supports himself by working. You cannot be supporting yourself on parental support, 529 plans or student loans & grants. You usually must have actually paid tuition, not had it paid by scholarships & grants.  It is usually best if the parent claims that credit. 

You cannot claim a credit if you are, or can be, claimed as a dependent by someone else.

 

If you are eligible, you have answered  something wrong, in the interview. But, a lot of people are just not eligible. See https://www.irs.gov/Individuals/AOTC