Be enrolled or taking courses at an eligible educational institution.
Be taking higher education course or courses to get a degree or other recognized education credential or to get or improve job skills.
Be enrolled for at least one academic period* beginning in the tax year.

Academic Period can be semesters, trimesters, quarters or any other period of study such as a summer school session. Academic periods are determined by the school. For schools that use clock or credit hours and do not have academic terms, the payment period may be treated as an academic period.

Important differences between LLC and AOTC

There are important differences between the LLC and AOTC. See our chart to Compare the LLC and AOTC

What are the income limits for LLC?

For TY2022, the amount of your LLC is gradually reduced (phased out) if your MAGI is between $80,000 and $90,000 ($160,000 and $180,000 if you file a joint return).
You can’t claim the credit if your MAGI is $90,000 or more ($180,000 or more if you file a joint return).

Also, if Box 5 is greater than Box 1 that means you received Box 5 scholarships/grants used to pay your educations expenses or other expenses more than your tuition was in Box 1.

Also, look at this article if Box 5 is greater than Box 1. Fact Sheet: Interaction of Pell Grants and Tax Credits: Students May Be Foregoing Tax Benefits by Mistake.

If you take that option your Box 5 amount could become taxable income as stated in the expense report once you enter your room and board expenses . You would report Room and Board or Pell Grant/Scholarship money used to pay for it (R&B Expense from Pell/Scholarship) in MISC INCOME>OTHER INCOME ) type Pell Grant/Scholarship and amount of taxable income. You certainly still have to meet the income requirements to do so. The other income should be no more than Box 5.

@tiffanystewart19

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