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Is a high school student earning early college credits (and who has a 1098-T), but only attends less than half time considered to be "first year of college" or not?

Forum|Forum|7 years ago
June 5, 2019
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If I say the student (a dependent) is "first year," does this affect future eligibility for educational credits for this student who currently doesn't qualify for any credits except Tuition and Fees. Also, are online class "books" that are really just codes to access the online class considered deductible? They are purchased through the college bookstore and I don't think they can be purchased elsewhere.

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Best answer by DawnC0

The only thing that will affect her future eligibility is if you claim the American Opportunity Tax Credit, as it can only be taken for 4 years. If you take it this year, she will only qualify to take it three more years. It is the most generous education credit, and therefore should be used wisely. Since she is enrolled less than half-time, she doesn't qualify anyway, so it won't matter this year. She will still be eligible to take the credit for four more years.

It doesn't matter how you answer the ''first-year'' question. If you answer yes, it changes nothing. If you answer it no, it will ask a follow-up question to determine whether or not you have already used the AOTC or Hope credit previously.

You can deduct the cost of course-related books (codes), supplies, and equipment for purposes of the Lifetime Learning Credit or Tuition and Fees Deduction if the expenses must be paid to the school or institution as a condition of enrollment or attendance. If the books are required and purchased from the college, include them in your expenses.

DawnC0Answer

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The only thing that will affect her future eligibility is if you claim the American Opportunity Tax Credit, as it can only be taken for 4 years. If you take it this year, she will only qualify to take it three more years. It is the most generous education credit, and therefore should be used wisely. Since she is enrolled less than half-time, she doesn't qualify anyway, so it won't matter this year. She will still be eligible to take the credit for four more years.

It doesn't matter how you answer the ''first-year'' question. If you answer yes, it changes nothing. If you answer it no, it will ask a follow-up question to determine whether or not you have already used the AOTC or Hope credit previously.

You can deduct the cost of course-related books (codes), supplies, and equipment for purposes of the Lifetime Learning Credit or Tuition and Fees Deduction if the expenses must be paid to the school or institution as a condition of enrollment or attendance. If the books are required and purchased from the college, include them in your expenses.