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March 16, 2021
Question

My daughter withdrew all of her classes and wonder if I still can claim any tax credit

  • March 16, 2021
  • 2 replies
  • 0 views

Hi,

 

My daughter just started her 4 years college in  August 2020. She took 4 classes but had to withdraw all of her classes medically before her finals in mid December. I received some refunds in 2021 and I received 1098-T. My question is can I still include 1098-T to my tax refund and claim any tax credit like the American Opportunity tax credit? The half time/full time is not checked on 1098-T? If I cannot claim American Opportunity tax credit can I claim other tax credit like Lifetime Learning Credit? Thank you for your help.

    2 replies

    March 16, 2021

    As she is not a at least half time student, you cannot claim the American Opportunity credit for her.

     

    She may be eligible for the Lifetime Learning credit.

     

    Please read this IRS document for more information.

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    fhendrikAuthor
    March 17, 2021

    Thank you for your answer. Should I reduce the box 1 amount on the 1098-T by any refund received in 2021?

    Hal_Al
    Employee
    March 17, 2021

    Q. Should I reduce the box 1 amount on the 1098-T by any refund received in 2021?

    A.  Yes.  You are allowed to do that.  What you enter in TT is not matched by IRS computers

    Hal_Al
    Employee
    March 17, 2021

    You cannot claim the AOC.  You can claim the LLC.  You should reduce the box 1 amount on the 1098-T by any refund received in 2021.