If i filed an American Opportunity education credit tax years 2017-2020, can i file a 1098-T in for tax year 2021?

Forum|Forum|3 years ago
August 21, 2022
3 replies
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if i took American Opportunity tax credit four prior tax years for my dependent student daughter, can i take the 1098-T tax credit on my 2021 tax return?

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DoninGA

Employee

Yes, the Lifetime Learning credit is available. See this TurboTax support FAQ for the credit - https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-credits-deductions/eligible-lifetime-learning-credit/L5x3QHNky_US_en_US?uid=l73oyuwd

NCPERSON1

@dwpennybacker AOTC is only available for 4 years, so no eligibilty left for that tax benefit,,....therefore, Lifetime Learning credit is the way to go.

she is still your dependent on your 2021 tax return, right?

Critter-3

The limitation is PER STUDENT ... so it sounds like the AOC was used up on that student years ago. Thus if you or another dependent on the return have qualifying education expenses and that student has not used up the AOC then you can use it again for that new student.

Hal_Al

Employee

There is no such thing as a "1098-T tax credit". As others have indicated, ther are two education credits that having a 1098-T may make you eligible for. The more generous "American Opportunity Credit'' (AOC or AOTC) is limited to being claimed four times, for each student. There is no limit to how many times the Lifetime Learning Credit (LLC) can be claimed. The LLC is 20 % of tuition paid (up to $10K) and is non-refundable (it can only be used to reduce your actual tax liability).

The student must be yourself, your spouse or your dependent.

mgv213

I filed an amended return for 2020 in February, it says it was completed last month in October. It was to claim the American opportunity tax credit which I had forgot to do. TurboTax showed that I would be owed 1000. I still had eligibility left as I had not completed 4 years of education and 4 years of the credit were not claimed. I haven’t received the refund and when I check my transcripts they say they were updated in October but the credit doesn’t show up. I haven’t been able to get the irs on the phone for months. Is this normal? What should I do?

NCPERSON1

@mgv213 - Can you please explain more about why you filed for the $1000?

How old are you?

Are either of your parents alive?

What was your filing status?

Did anyone else (normally your parents) claim you on their tax return?

Hal_Al

Employee

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