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April 18, 2022
Question

I put my 1098-t information in from my college and its telling me that i am not eligible for the education credit. I have been eligible every year i have been in school.

  • April 18, 2022
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2 replies

April 18, 2022

One reason you may not be allowed an American Opportunity credit is you can only receive that for 4 years. If that applies to you, you may be eligible for a Lifetime Learning Credit, but you would have to earn money and have a tax liability to benefit from it.

 

Also, if you indicated that someone could claim you as a dependent on their tax return you would not be eligible for an education credit.

 

Furthermore, if your income was over $90,000 (single) or $180,000 (joint) you would not be eligible for an education credit.

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Hal_Al
Employee
April 18, 2022

If you are eligible, you have answered  something wrong, in the interview. But, a lot of people are just not eligible.  One possibility is that you wrongly claimed it in the previous years, and TT is getting it right this year,

See https://www.irs.gov/Individuals/AOTC

 

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, even if you don't qualify as a dependent, 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.

Reference: Line 7 instructions for form 8863. https://www.irs.gov/instructions/i8863