Can I do anything about a partial disallowance letter I recieved in the mail? It says the IRS disallowed the American Opportunity Credit

[queencandace92]

They said they didn't recieve information from the educational institution to verify eligibility for the credit. I filed via turbotax and it said we should have received $1k back from that credit. Hub went to rv tech school last year which is why I thought it would have qualified.

[Critter-3]

why I thought it would have qualified

Well the IRS did not get a 1098-T from the college so unless you can show that you qualify for the credit and send them proof of the cost then the IRS change stands.  Read the notice ... it will tell you how to diagree with the IRS conclusion.  

[TomD8]

Contact the school and ask them to send the required information to the IRS.

[rjs]

Did your husband get a Form 1098-T from the school? You cannot claim the American Opportunity Credit without a 1098-T, except in some very unusual circumstances.

To claim the American Opportunity Credit the school has to be an "eligible educational institution." The following is from IRS Publication 970.

"An eligible educational institution is generally any accredited public, nonprofit, or proprietary (privately owned profit-making) college, university, vocational school, or other postsecondary educational institution. Also, the institution must be eligible to participate in a student aid program administered by the U.S. Department of Education."

"The educational institution should be able to tell you if it is an eligible educational institution."

Also, to claim the American Opportunity Credit the student must meet four requirements. One of the requirements is the following, again from IRS Publication 970.

"3. For at least one academic period beginning (or treated as beginning) in 2021, the student both:

a. Was enrolled in a program that leads to a degree, certificate, or other recognized educational credential; and

b. Carried at least one-half the normal full-time workload for his or her course of study.

The standard for what is half of the normal full-time workload is determined by each eligible educational institution. However, the standard may not be lower than any of those established by the U.S. Department of Education under the Higher Education Act of 1965."

[NCperson]

@queencandace92 - you may be eligible for the lifetime learning credit, so it may be worth amending if the AOTC becomes a dead end. it is a 'non-refundable' credit, so it can not reduce Line 22 of Form 1040 below zero.  

[rjs]

For the Lifetime Learning Credit, the requirement for a Form 1098-T and the definition of an eligible educational institution are the same as for the American Opportunity Credit. However, the requirements for the student are much simpler. He does not have to be working towards a degree or certificate, and does not have to be at least half-time. All the student has to do is enroll in a course.