American Opportunity Tax Credit

Forum|Forum|6 years ago
February 17, 2020
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Hi!
Yesterday I went to file my taxes and took in my W-2 and my 1098-T. When I told the guy to put my form in for my 1098-T he said I wasn’t allowed to receive the credit because the new “tax laws” say we can only claim the credit once every 4 years. I am independent, 21 years old, and this is my 3rd year in college as an undergrad. He said on the tax form when he checked the box that indicated if I was “under 24 years old” that the credit was automatically removed. Is there a reason why I am having this problem if in for the 2017 and 2018 taxes I never had a problem and received my credit ?

xmasbaby0

Employee

Who in the world was the "guy" you went to? You --or the parent who claims you as a dependent -- can claim the AOC a total of four times while you are an undergraduate student. There is no rule about "every four years."

Check to see if he also entered that you are a dependent on someone else's tax return. It will be on the top half of the Form 1040. If you are claimed as someone else's dependent you cannot receive education credits.

What we do not know for sure is if you can be claimed as a dependent, since all we have is your belief that you are "independent" and students often get confused about that.

Here are the rules:

WHO CAN I CLAIM AS A DEPENDENT?

You can claim a child, relative, friend, fiance (etc.) as a dependent on your 2019 taxes as long as they meet the following requirements:

Qualifying child

• They are related to you.

• They cannot be claimed as a dependent by someone else.

• They are a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.

• They are not filing a joint return with their spouse.

• They are under the age of 19 (or 24 for full-time students).

No age limit for permanently and totally disabled children

• They live with you for more than half the year (exceptions apply).

Qualifying relative

• They don't have to be related to you (despite the name).

• They cannot be claimed as a dependent by someone else.

• They are a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.

• They are not filing a joint return with their spouse.

• They lived with you the entire year.

• They made less than $4200 (not counting Social Security)

• You provided more than half of their financial support. More info

When you add someone as a dependent, we'll ask a series of questions to make sure you can claim them.

Related Information:

• Does a dependent have to live with me?

• What does "financially support another person" mean?

• Can I claim a newborn baby?

https://www.irs.gov/help/ita/am-i-eligible-to-claim-an-education-credit

https://ttlc.intuit.com/questions/3262983-who-is-eligible-to-take-the-american-opportunity-tax-credit

https://ttlc.intuit.com/community/credits-and-deductions/help/what-expenses-qualify-for-the-american-opportunity-tax-credit-and-which-ones-do-not/00/26847

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**